LSI INDUSTRIES INC 8-K

What Happened

• On March 24, 2026, LSI Industries Inc. announced it entered a Credit Agreement providing a $350 million senior secured credit facility to help fund its acquisition of SRR Holdings, Inc. (Royston). The facility consists of a $200 million five‑year term loan and a $150 million revolving credit commitment and matures on or about March 31, 2031. LSI also announced the closing of the Royston acquisition in a press release the same day.

Key Details

• Total facility: $350 million (Term loan $200M; Revolving credit $150M).
• Maturity: approximately March 31, 2031 (five‑year term loan).
• Pricing: interest at company’s option of SOFR or a customary base rate plus a margin that varies with LSI’s consolidated total net leverage ratio.
• Fees & structure: unused facility fee expected to start at 27.5 basis points; upsize option of up to $75 million; swingline availability up to $15 million; obligations secured by substantially all personal property; all existing and future domestic wholly‑owned subsidiaries will guaranty the debt.
• Use of proceeds: to pay part of the purchase price for the Royston acquisition. LSI filed the Credit Agreement as Exhibit 10.1 and furnished the closing press release as Exhibit 99.1.

Why It Matters

• The new credit facility provides LSI with committed financing to complete the Royston acquisition and supports liquidity through a $150M revolver.
• Terms (size, 5‑year tenor, secured nature, leverage‑based pricing and fees) affect LSI’s interest costs, covenant and collateral profile and could influence cash flow available for operations or other investments.
• Investors should watch for the company’s forthcoming amended 8‑K with pro forma financial information (to be filed within the required amendment period) to see how the acquisition and new debt change LSI’s balance sheet and leverage metrics.