8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 15, 2009

SPARTON CORPORATION

(Exact Name of Registrant as Specified in its Charter)

Ohio	1-1000	38-1054690
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

2400 East Ganson Street Jackson, Michigan	49202
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (517) 787-8600

N/A
(Former Name or former address, if changed since last report)

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 1.01 Entry into a Material Definitive Agreement.

On June 15, 2009, Sparton Corporation (the “Company”) entered into a Modification Agreement (the “Amendment”) with National City Bank, a national banking association (the “Lender”), which amends the terms of the existing Promissory Note dated January 22, 2008 between the Company and the Lender, as amended (the “Promissory Note”) and the related documents. The Promissory Note relates to an $18 million revolving line of credit facility (the “Line of Credit Loan”) that supports the Company’s working capital needs and other general corporate purposes. The Line of Credit Loan is secured by substantially all assets of the Company. The Line of Credit Loan is evidenced by, among other documents, the Promissory Note, as amended by the Master Amendment to Loan Documents, dated as of April 21, 2008 and effective as of March 31, 2008, by the Second Master Amendment to Loan Documents, dated as of July 31, 2008 and effective as of June 30, 2008, by the Third Master Amendment to Loan Documents, dated as of November 12, 2008, by the Fourth Master Amendment to Loan Documents, dated as of January 20, 2009 and by the Promissory Note Modification Agreement dated April 30, 2009 and effective May 1, 2009 (collectively, the “Line of Credit Loan Documents”).

Pursuant to the Amendment, the terms of the Line of Credit Loan Documents were amended to extend the maturity date of the Promissory Note from June 15, 2009 to August 15, 2009. The Company also ratified and confirmed its obligations and liability to the Lender under the Line of Credit Loan Documents pursuant to the Amendment.

The Line of Credit Loan Documents include representations, covenants and events of default that are customary for financing transactions of this nature. The Company’s obligations under the Line of Credit Loan Documents are guaranteed by each of the Company’s subsidiaries, and each guarantee is secured by all assets of the respective subsidiary.

The foregoing does not constitute a complete summary of the terms of the Amendment and reference is made to the complete form of the Amendment and the press release that are attached as Exhibit 10.1 and Exhibit 99.1, respectively, to this report and are hereby incorporated by reference.

Table of Contents

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit No.	Description
Exhibit 10.1	Modification Agreement dated June 15, 2009 by and between Sparton Corporation and National City Bank
Exhibit 99.1	Press Release dated June 19, 2009 issued by Sparton Corporation regarding the Modification Agreement

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	SPARTON CORPORATION
Dated: June 19, 2009	By:	/s/ Cary B. Wood
		Cary B. Wood, President and Chief Executive Officer

Index to Exhibits

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit No.	Description
Exhibit 10.1	Modification Agreement dated June 15, 2009 by and between Sparton Corporation and National City Bank
Exhibit 99.1	Press Release dated June 19, 2009 issued by Sparton Corporation regarding the Modification Agreement

EX-10.1

Exhibit 10.1

Obligor #8452124486
Obligation #0095739967

MODIFICATION AGREEMENT

THIS MODIFICATION AGREEMENT (“Modification”) is dated as of June 15, 2009 (and is effective as of June 15, 2009), by and between SPARTON CORPORATION, an Ohio corporation (“Borrower”) and NATIONAL CITY BANK, a national banking association (“Lender”).

WHEREAS, Lender agreed to lend to Borrower an amount not to exceed the sum of Twenty Million and 00/100 Dollars ($20,000,000.00) (“Loan”), which Loan was evidenced by a certain Promissory Note dated January 22, 2008 (as extended, amended or otherwise modified to date, the “Note”) (the said Note and any other instrument or document given in connection with or to secure the Loan being collectively referred to as “Loan Documents”); and

WHEREAS, the parties hereto desire to modify the Note as hereinafter provided.

NOW, THEREFORE, in consideration of the foregoing promises and the covenants contained herein, the parties hereto agree as follows:

1.	Liability of Borrower. Borrower hereby ratifies and reconfirms Borrower’s obligations and all liability to Lender under the terms and conditions of the Loan Documents and acknowledges that Borrower has no defenses to or rights of set-off against Borrower’s obligations and all liability to Lender thereunder. Borrower further acknowledges that Lender has performed all of Lender’s obligations under the Loan Documents.
2.	Modification. (a) The principal amount outstanding under the Note as of the effective date of this Modification is Fifteen Million Five Hundred Thousand and 00/100 Dollars ($15,500,000.00).
	(b) The Note is hereby modified to extend the maturity date from June 15, 2009, to August 15, 2009.
	(c) The next payment is due July 15, 2009, and payments are due monthly thereafter as set forth in the Note. Payments prior to the first scheduled payment above have been made as evidenced by the books and records of Lender.
3.	Ratification of Loan Documents. The Loan Documents are in all respects ratified and confirmed by the parties hereto and incorporated by reference herein, and each of the Loan Documents and this Modification shall be read, taken and construed as one and the same instrument. Capitalized terms used herein and not otherwise defined shall have the meanings given to them in the Loan Documents. In the event of any conflict between the terms and provisions of this Modification and the terms and provisions of the Loan Documents, the terms and provisions of this Modification shall control.

(SIGNATURES ARE CONTAINED ON THE NEXT FOLLOWING PAGE)

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IN WITNESS WHEREOF, the undersigned have caused this Modification to be executed as of the day and year first above written.

SPARTON CORPORATION, an Ohio corporation
By:	/s/ Gregory A. Slome
	Gregory A. Slome
	Its: Senior Vice President/CFO
NATIONAL CITY BANK, a national banking association
By:	/s/ John McManus
	John McManus
	Its: Regional President

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EX-99.1

Exhibit 99.1

Contact: Dick Pacini
The Millerschin Group
248/276-1970
Cell: 248/770-6446
dpacini@millerschingroup.com

FOR IMMEDIATE RELEASE

Sparton Corporation Receives an Extension of Its Credit Facility

JACKSON, Mich. — June 19, 2009 — Sparton Corporation (NYSE: SPA) today announced that the terms of its Line of Credit Loan Documents with National City Bank were amended to extend the maturity date of the Promissory Note from June 15, 2009, to August 15, 2009, as due diligence activites continue with a prospective lender with respect to a potential replacement facility. The Company also ratified and confirmed its obligations and liability to the lender under the Line of Credit Loan Documents pursuant to the Amendment. Details of the extension are outlined in the Company’s Current Report on Form 8-K, which was filed today with the Securities and Exchange Commission.

About Sparton Corporation

Sparton Corporation (NYSE:SPA) now in its 109th year, is a broad-based provider of electronics to technology-driven companies in diverse markets. The Company provides its customers with sophisticated electronic and electromechanical products through prime contracts and through contract design and manufacturing services. Headquartered in Jackson, Mich., Sparton currently has five manufacturing locations worldwide. The Company’s Web site may be accessed at http://www.sparton.com.

Safe Harbor and Fair Disclosure Statement

Certain statements described in this press release are forward-looking statements within the scope of the Securities Act of 1933, as amended (the “Securities Act”), and the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements may be identified by the words “believe,” “expect,” “anticipate,” “project,” “plan,” “estimate,” “will” or “intend” and similar words or expressions. These forward-looking statements reflect Sparton’s current views with respect to future events and are based on currently available financial, economic and competitive data and its current business plans. Actual results could vary materially depending on risks and uncertainties that may affect Sparton’s operations, markets, prices and other factors. Important factors that could cause actual results to differ materially from those forward-looking statements include, but are not limited to, Sparton’s financial performance and the implementations and results of its ongoing strategic initiatives. For a more detailed discussion of these and other risk factors, see Part I, Item 1A, Risk Factors and Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, in Sparton’s Form 10-K for the year ended June 30, 2008, and its other filings with the Securities and Exchange Commission. Sparton undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

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