On January 7, 2016, Cray Inc. entered into an amended and restated credit agreement with Wells Fargo Bank, National Association which provides a revolving line of credit through December 1, 2017, for up to $50 million to be used for general corporate purposes, including working capital requirements and capital expenditures. The credit facility will also support the issuance of letters of credit. As of January 7, 2016, based on letters of credit outstanding, The company had approximately $46.4 million available under the Credit Facility.

The Credit Facility is secured by a first priority lien in all of accounts receivable and other rights to payment, general intangibles, inventory and equipment. Borrowings under the credit facility bear interest at either a fluctuating rate equal to the daily one month LIBOR rate plus a margin of 1.25% or a fixed interest rate for one, three or six months equal to the LIBOR rate for the applicable period plus a margin of 1.25%. The company are also required to pay the lender customary letter of credit fees, and a commitment fee of 0.18% per annum in respect of the unutilized commitment amount under the Amended Credit Agreement.

The Amended Credit Agreement requires that to maintain certain financial ratios. In addition, the Amended Credit Agreement contains restrictions on ability to, without Wells Fargo Bank's prior approval, among other things, incur additional indebtedness, engage in certain mergers and acquisition transactions, pay dividends and distributions, make investments, loans or advances and create liens on assets, subject to specified exceptions. The Amended Credit Agreement also contains customary events of default that include, among others, non-payment of principal, interest or fees, default on debt to third parties in excess of a specified amount, inaccuracy of representations and warranties, bankruptcy and insolvency events and material judgments.

Upon the occurrence of an event of default, outstanding obligations under the Amended Credit Agreement may be accelerated by the lender and become due and payable immediately. The company may terminate the amended credit agreement and the credit facility at any time prior to the maturity date without premium or penalty. The amended credit agreement restates and replaces the restated credit agreement with Wells Fargo Bank, dated as of October 1, 2012, which provided a $10 million line of credit which was used to obtain letters of credit and foreign exchange contracts.