01/03/2024 - RF Industries Ltd.: Material Agreement - Form 8-K

On February 29, 2024, RF Industries, Ltd., a Nevada corporation (the "Company") entered into Amendment No. 3 to Loan Agreement ("Loan Amendment No. 3"), effective as of February 29, 2024, with Bank of America, N.A. (the "Bank"), amending that certain Loan Agreement, dated as of February 25, 2022, between the Company and the Bank (as amended, the "Loan Agreement"), under which the Bank provided the Company with a $17 million term loan (the "Term Loan") and a $3 million revolving credit facility (the "Revolving Credit Facility" and together with the Term Loan, the "Credit Facility"). Loan Amendment No. 3, among other matters, defers the requirement that the Company make an additional principal payment of $1.0 million on the Term Loan, from March 1, 2024, as was required under Amendment No. 2 to the Loan Agreement, entered into between the Company and the Bank on January 26, 2024 ("Loan Amendment No. 2"), to April 1, 2024. Further, Loan Amendment No. 3 reduces the additional fee the Company is required to pay the Bank on March 2, 2024 from 1% of the collective outstanding principal balances of the Revolving Credit Facility and Term Loan as of March 1, 2024 as required under Loan Amendment No. 2, to 0.50% of the collective outstanding principal balances of the Revolving Credit Facility and Term Loan as of March 1, 2024. Additionally, Loan Amendment No. 3 requires the Company to pay the Bank a fee equal to 0.50% of the collective outstanding principal balances of the Revolving Credit Facility and Term Loan as of March 1, 2024, if the Credit Facility is not repaid in full on or before April 2, 2024 (the "April 2024 Fee"). The April 2024 Fee, if applicable, will be due on April 2, 2024. Under Loan Amendment No. 3, the Company must continue to maintain liquidity of at least $2.0 million and pay the current remaining outstanding balance of $500,000 on the Revolving Credit Facility by March 1, 2024, as required under Loan Amendment No. 2.

The foregoing description of Loan Amendment No. 3 does not purport to be complete and is qualified in its entirety by reference to, and should be read in conjunction with, the full text of Loan Amendment No. 3, a copy of which is filed as Exhibit 10.1 and which is incorporated herein by reference.