No immediate stock catalyst — the facility provides liquidity flexibility without any reported borrowings. Monitor future quarterly filings for draw activity and financial covenant compliance (first test at July 31, 2026). The 2.25x leverage covenant suggests management expects to operate well within this threshold.
Price Chart
Executive Summary
Frequency Electronics entered into a $10M senior secured revolving credit facility with JPMorgan Chase Bank, maturing June 12, 2029. The facility, guaranteed by subsidiary FEI-Zyfer and secured by substantially all assets, provides working capital and general corporate purposes flexibility. No borrowings were reported at closing, making this a liquidity enhancement rather than a capital event.
Key Facts
- $10M revolving credit facility with JPMorgan Chase Bank, N.A., maturing June 12, 2029
- Up to $5M available for letters of credit
- Interest rates: Prime + 2.50% (CBFR) or Term SOFR + 2.50% (SOFR)
- Commitment fee of 0.35% per annum on undrawn portion
- Financial covenants: total leverage ratio ≤ 2.25x and fixed charge coverage ratio ≥ 1.25x, effective Q2 FY2027
- Facility can be increased by up to $10M additional, subject to conditions
- Secured by all assets of Frequency Electronics and FEI-Zyfer, Inc.
Financial Impact
Revolving credit facility of $10M established; no initial draw reported. Commitment fee of 0.35% on undrawn balance.
Risk Factors
- Financial covenant breach could trigger acceleration if leverage or coverage ratios deteriorate
- Secured facility pledges substantially all assets, limiting future collateral flexibility
- Uncertainty around whether or when the company will actually draw on the facility
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001185185-26-002498 |
| Document: feimex10-2.htm | 0001185185-26-002498 |
| Document: feim8k061226.htm | 0001185185-26-002498 |
| Document: 0001185185-26-002498-index-headers.html | 0001185185-26-002498 |
| Document: 0001185185-26-002498-index.html | 0001185185-26-002498 |
| Document: 0001185185-26-002498.txt | 0001185185-26-002498 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | 8-K | $61.60 $64.18 | ▲ +4.19% | ▲ +4.71% | $67.28 (+9.22%) |
Oct 21, 2026 5d ago | Press Release | $61.60 $64.18 | ▲ +4.19% | ▲ +4.71% | $67.28 (+9.22%) |
Sep 10, 2026 6w ago | Press Release | $88.38 $85.50 | ▼ −3.25% | ▼ −2.81% | $67.28 (−23.87%) |
Sep 3, 2026 7w ago | Press Release | $60.67 | awaiting T+1 | — | $67.28 (+10.90%) |
Jul 28, 2026 12w ago | Press Release | $57.69 $59.89 | ▼ −3.81% | ▼ −2.14% | $67.28 (−16.62%) |
Jul 22, 2026 13w ago | EFFECT | $72.39 $73.24 | ▲ +1.17% | ▲ +2.41% | $67.28 (−7.06%) |
Jul 17, 2026 14w ago | S-3 | $66.72 $79.85 | ▲ +19.67% | ▲ +18.84% | $67.28 (+0.84%) |
Jun 12, 2026 19w ago | 8-K | $74.31 $70.15 | ▼ −5.60% | ▼ −5.00% | $67.28 (−9.46%) |
May 27, 2026 21w ago | Press Release | $75.60 $75.88 | ▲ +0.37% | ▲ +0.13% | $67.28 (−11.01%) |
Mar 11, 2026 32w ago | Press Release | $46.66 $48.11 | ▲ +3.11% | ▲ +3.71% | $67.28 (+44.19%) |
US Market Status
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