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IPG PHOTONICS CORP FILES (8-K) Disclosing Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant, Financial Statements and Exhibits

August 14, 2014



Item 1.01. Entry into a Material Definitive Agreement.

On August 11, 2014, IPG Laser GmbH ("IPG Laser"), a wholly-owned subsidiary of IPG Photonics Corporation (the "Registrant"), entered into a new unsecured revolving line of credit (the "Credit Facility Agreement") with Deutsche Bank AG (" Deutsche Bank "). IPG Laser, located in Burbach, Germany, is one of the principal manufacturing, research and sales operations of the Registrant. The Credit Facility Agreement replaces the current line of credit with Deutsche Bank, which was to expire on August 31, 2014.

Under the new Credit Facility Agreement, IPG Laser has available credit up to Euro 30.0 million, an increase from Euro 20.0 million under the current facility with Deutsche Bank. Of the Euro 30.0 million in available credit, up to Euro 22.0 million is available to certain of our foreign subsidiaries as follows: our Russian subsidiary - up to Euro $16.0 million, our Italian subsidiary - up to Euro $3.0 million, and our Chinese subsidiary - up to Euro $3.0 million. The new Credit Facility Agreement expires July 31, 2017, and provides for loans bearing interest at various rates based upon the type of loan. There are no financial covenants in the Credit Facility Agreement and advances are subject to certain conditions. The Credit Facility Agreement is guaranteed by the Registrant pursuant to a guarantee (the "Registrant Guarantee"). Further, IPG Laser guarantees the lines of credit extended to our Russian, Italian and Chinese subsidiaries under a separate guarantee (the "IPG Laser Guarantee"). The terms of the Credit Facility Agreement, the Registrant Guarantee and IPG Laser Guarantee (collectively, the "Euro Credit Facility Documents") are substantially similar to the credit facility agreement and guarantees they replace.

The foregoing descriptions of the Euro Credit Facility Documents do not purport to be complete and are qualified in their entirety by reference to the Euro Credit Facility Documents, copies of which are attached as exhibits to this Current Report on Form 8-K and are incorporated herein by reference.

-------------------------------------------------------------------------------- Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth under Item 1.01, "Entry into a Material Definitive Agreement," is incorporated herein by reference. -------------------------------------------------------------------------------- Item 9.01. Financial Statements and Exhibits. (d) Exhibits Exhibit No. Credit Facility Agreement between IPG Laser GmbH and Deutsche Exhibit 10.1 Bank AG, dated August 7, 2014. Guarantee of the Registrant to Deutsche Bank AG, dated August 7, Exhibit 10.2 2014. Guarantee of IPG Laser GmbH to Deutsche Bank AG, dated August 7, Exhibit 10.3 2014. Annex 1 to Guarantee of IPG Laser GmbH to Deutsche Bank AG, dated Exhibit 10.4 August 11, 2014.



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Source: Edgar Glimpses


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