Subsequent Events

9 Months Ended

Jun. 30, 2015

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On July 10, 2015, the company purchased from Sypris Solutions, Inc. (“Sypris”) the majority of the assets of Sypris’s Morganton, North Carolina manufacturing facility for $10.5 million cash consideration and also acquired related inventories and accounts receivable, and assumed or released certain accounts payable and other accrued liabilities, for an additional consideration of $2 million (subject to customary post-closing adjustment). As part of the acquisition, the company also agreed to lease the Morganton facility for an initial five-year term, for $2.0 million in rent, pre-paid at the closing. Within 30 days following the closing, the company may elect to either purchase the facility or extend the lease for an additional 15 years, in either case for $1.2 million.

On July 2, 2015, Sypris entered into a secured promissory note (the “Promissory Note”) in the principal amount of $3.0 million, in favor of the company, in exchange for the release of the company's outstanding U.S. trade receivables net of its outstanding U.S. trade payables. The Promissory Note, which matures on September 30, 2015, is secured by substantially all of the collateral securing Sypris’s secured revolving credit facility with PNC Bank, National Association (“PNC”) and is subordinate to the rights of PNC.