Item 1.01. Entry Into Material Definitive Agreement
On November 5, 2008, Hutchinson Technology Incorporated (the "Company") and its wholly-owned subsidiary Hutchinson Technology Asia, Inc. ("HTA") entered into an amendment (the "Amendment") of its second amended and restated loan agreement (the "Credit Facility") with Bank of America N.A. ("BofA"). BofA is the successor by merger to LaSalle Bank National Association and the Company has cash management accounts at BofA.
The material terms of the Amendment reduce the credit commitment from $50 million to $25 million within 90 days of the Amendment, adjust the maturity date to December 1, 2009, provide for a blanket lien on substantially all the non-real estate assets of the Company and HTA and increase the maximum allowable debt to total capital ratio to 0.60 to 1.00. Also as a result of the Amendment, the Credit Facility's pricing has increased to LIBOR plus 2% or Prime plus 2% and the fee to be paid on the unused amount of the Credit Facility has increased to 0.5%.
The foregoing description of the Amendment does not purport to be complete and is qualified in its entirety by reference to the Amendment, a copy of which will be filed as an exhibit to the Company's Annual Report on Form 10-K for the period ended September 28, 2008.

---

Table of Contents