Manitex Enters into a Material Definitive Agreement to Increase Company's Borrowing Capacity

Manitex International

currently has a Canadian revolving credit facility (the “Loan Agreement”) with Comerica Bank (“Comerica”). On August 10, 2012, the Company and certain of its subsidiaries entered into amendments to the existing Loan Agreement with Comerica which, among other things: Increases the maximum borrowing under the credit facility by $1,500,000 from $6,500,000 to $8,000,000; Modifies the advance formula for the Canadian credit facilities which will increases the amount the Company can borrow. The specific documents that were amended are: Amendment No. 1 to Amended and Restated Master Revolving Note dated December 21, 2011 (“Amendment No. 1), Exhibit 10.1 and First Amendment to Advance Formula Agreement dated December 23, 2011 (“First Amendment”) Exhibit 10.2. Additionally, the following the Recertification and Reaffirmations were also executed: Recertification of Authority issued by Manitex Liftking, ULC, Exhibit 10.3. Reaffirmation of Guaranty that reaffirms Manitex International, Inc.'s obligation under its Guaranty dated December 23, 2011, Exhibit 10.4 Reaffirmation of Guaranty that reaffirms Manitex, LLC's obligation under its Guaranty dated December 23, 2011, Exhibit 10.5. Amendment No. 1, as stated above, increases the Maximum that can be borrowed under the Loan Agreement by $1,500,000 to $8,000,000. Additionally, Amendment No. 1 adds a provision that under which Comerica is to receive an unused credit line fee in an amount equal to one-eigth percent (1/8%) per annum payable quarterly in arrears. The First Amendment, modifies certain definitions and amounts used in calculating the borrowing base including increasing the inventory borrowing limit used in the advance formula from CDN$3,500 to CDN$5,000 and to increase the work in process inventory cap from CDN$500 to CDN$625. The advance formula was also modified so that the $5,000 inventory cap is the maximum that can be borrowed using the inventory as collateral including amounts borrowed using work in process inventory as collateral. Finally, the definition of Eligible Accounts was modified to include certain governmental agencies or departments as Eligible Accounts. The above summaries of the amendments, recertification and reaffirmations are qualified in their entirety by reference to the copies of such amendments, recertification and reaffirmations attached as Exhibits 10.1, 10.2, 10.3, 10.4, and 10.5 to this Current Report on Form 8-K and incorporated by reference herein.