The Company has a $40 million secured revolving credit facility (the “Strattec Credit Facility”) with BMO Harris Bank N.A., while its joint venture has an $18 million secured revolving credit facility (the “ADAC-Strattec Credit Facility”) with BMO Harris Bank N.A., which the Company guarantees. The ADAC-Strattec Credit Facility matures in August 2026. The credit facilities are secured by U.S. cash balances, accounts receivable, inventory, and fixed assets located in the U.S.

Interest on borrowings under the Strattec Credit Facility is based on the bank's prime rate or SOFR plus 1.85%. Interest on borrowings under the ADAC-Strattec Credit Facility is at varying rates based on the bank's prime rate plus a 2% interest rate margin or SOFR plus 3.10%. Both credit facilities contain a restrictive financial covenant that requires the applicable borrower to maintain a minimum net worth level. The ADAC-Strattec Credit Facility includes an additional restrictive financial covenant that requires the maintenance of a minimum fixed charge coverage ratio. As of September 28, 2025, we were in compliance with all financial covenants.

Outstanding borrowings under the credit facilities were as follows (in thousands):


		Strattec Credit Facility					ADAC-Strattec Credit Facility
		September 28, 2025			June 29, 2025		September 28, 2025		June 29, 2025
Outstanding borrowings	$		—	$		—	$	5,000	$	8,000

Average outstanding borrowings and the weighted average interest rate under each such credit facility were as follows (in thousands, except percentages):


		Strattec Credit Facility					ADAC-Strattec Credit Facility
		Three Months Ended					Three Months Ended
		September 28, 2025			September 29, 2024		September 28, 2025			September 29, 2024
Average outstanding borrowings	$		—	$		—	$	6,552		$	13,736
Weighted average interest rate			—			—		7.4	%		8.5	%

On October 27, 2025, the Company entered into a new revolving credit agreement with BMO Harris N.A (“Amended & Restated Credit Agreement”), to replace the existing $40 million Strattec Credit Facility that was set to mature in August 2026. The Amended & Restated Credit Agreement provides for a $40 million revolving line of credit which matures October 2028. The refinancing was undertaken to extend the maturity profile. The new facility bears interest at a rate based on SOFR plus an applicable margin of 1.50%. The previous Strattec Credit Facility was terminated upon the closing of the new agreement.