Comtech has amended its senior credit agreement for the fifth time since 2024, and the new amendment waives the cash sweep on the fiscal year that ended on Friday
Read the list of prior amendments before reading the new one. Comtech's credit agreement is dated 17 June 2024. Since then it has been amended by a waiver and amendment in October 2024, a second waiver and amendment in March 2025, a third amendment in July 2025, a consent and amendment in June 2026, and now a fifth, signed on 30 July with the lenders, TCW Asset Management Company as administrative agent and Wingspire Capital as revolving agent.
Amendment No. 5 does two things. It waives any excess cash flow prepayment that would have been payable for the fiscal year ended 31 July 2026, which is to say the year that closed last Friday. And it makes technical changes to how a prepayment is applied using 65 percent of a $10.0m advance payment of purchase price, received under a securities purchase agreement dated 14 June 2026 between Comtech, certain of its subsidiaries, and Wavestream Corporation.
A matching amendment to the subordinated credit agreement, the fourth on that facility, was signed the same day with U.S. Bank Trust Company as agent. It handles the other 35 percent.
The arithmetic lines up
Sixty-five percent of $10.0m is $6.5m. Thirty-five percent is $3.5m. On 31 July, the day after the amendments were signed, Comtech made voluntary prepayments of exactly those amounts: $6.5m toward the senior term loan and $3.5m toward the priority term loan under the subordinated facility. A further $1.0m of scheduled senior term loan principal was repaid the same day. The filing also repeats a point from the quarterly report for the quarter ended 30 April, that the revolving facility was paid down in May and remains undrawn.
What the lenders got
The warrants issued to lenders in June 2024 cover up to 1,435,884 shares at an exercise price of 10 cents, exercisable until the close of business on 17 June 2031. The first amendment to those warrants adds a put right.
If the term loans are refinanced in full on or before maturity, or if a specified permitted individual disposition closes, each warrant holder may require Comtech to buy back up to half of its warrants in cash, at 90 percent of the 30-day volume weighted average price of the stock measured the day before the repurchase date. The 8-K gives no outstanding balance for either term loan, so the size of what was prepaid against what remains cannot be read from it.
