content: 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:  JANUARY 14, 1997
  
  
                               KEY TRONIC CORPORATION
  
  
         WASHINGTON                   0-11559                     91-0849125
  (STATE OF INCORPORATION)    (COMMISSION FILE NUMBER)        (I.R.S. EMPLOYER 
                                                              IDENTIFICATION NO.)
  
  
  
                                  P. O. BOX 14687
                               N. 4424 SULLIVAN ROAD
                             SPOKANE, WASHINGTON 99214
                                   (509) 928-8000
  
  
                         SECURITIES REGISTERED PURSUANT TO
                          SECTION 12(B) 0F THE ACT:  NONE
  
  
                         SECURITIES REGISTERED PURSUANT TO
                      SECTION 12(G) OF THE ACT:  COMMON STOCK
  
  
                       INFORMATION TO BE INCLUDED IN REPORT
  
  
  
  ITEM 5.        OTHER EVENTS.
  
  On December 31, 1996, Registrant entered into a secured financing agreement with
  General Electric Capital Corporation.  The agreement contains covenants that
  relate to maximum capital expenditures, minimum debt service coverage, minimum
  earnings before income tax, depreciation, and amortization, and maximum leverage
  percentages.  The agreement contains an $11,000,000 term note and a revolving
  credit line of up to $30,000,000.  The agreement is secured by the assets of the
  corporation.
  
  The term note is payable in quarterly installments of principal, each in the
  amount of $250,000 quarterly commencing in March 1997 and ending in December
  1997.  Thereafter, the quarterly installment payments  of principal will be
  $500,000 commencing in March 1998 and maturing in December 2002.  If debt
  service coverage is greater than 1.4, this note bears interest at one and 
  three-quarters percent (1.75%) in excess of the applicable LIBOR rate.  If 
  debt service coverage is less than or equal to 1.4, this note bears interest 
  at two percent (2.00%) in excess of the applicable LIBOR rate.  At December 
  31, 1996, the applicable interest rate was seven and one-half percent (7.50%).
  
  The revolving loan is renewable and covers an initial period of approximately 
  five years expiring on December 31, 2001.  If debt service coverage is greater 
  than 1.4, the applicable interest rate is one and one-half (1.50%) in excess of 
  the applicable LIBOR rate.  If debt service coverage is less than or equal to 
  1.4, the applicable interest rate is one and three-quarters percent (1.75%) in 
  excess of the applicable LIBOR rate.  At December 31, 1996, the applicable 
  interest rate was seven and one-quarter percent (7.25%).
  
  This agreement replaces a secured term note payable with a current balance of 
  $8.4 million and a $28.0 million secured revolving credit agreement.  The 
  former agreement was entered into on October 24, 1994 with The CIT Group/
  Business Credit, Inc.
  
  ITEM 7.       FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
                EXHIBITS
  
                (c)  EXHIBITS
  
                EXHIBIT    DESCRIPTION
                NUMBER
  
                99.1       Credit Agreement dated as of December 31, 1996 among
                           Key Tronic Corporation and General Electric Capital
                           Corporation.
                           
                99.2       Press Release issued January 7, 1997.
  
  
                                   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 thereunto duly authorized.
  
                               KEY TRONIC CORPORATION
  
  
                               /S/ RONALD F. KLAWITTER
  
                               RONALD F. KLAWITTER,
                               Vice President and
                               Chief Financial Officer
  
  
  Date: January 14, 1997
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metadata_filer: {"company-data": {"conformed-name": "KEY TRONIC CORP", "cik": "0000719733", "assigned-sic": "3577", "irs-number": "910849125", "state-of-incorporation": "WA", "fiscal-year-end": "0630"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-11559", "film-number": "97505964"}, "business-address": {"street1": "N 4424 SULLIVAN RD", "city": "SPOKANE", "state": "WA", "zip": "99216", "phone": "5099288000"}, "mail-address": {"street1": "P O BOX 14687", "city": "SPOKANE", "state": "WA", "zip": "99214"}}
text: 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:  JANUARY 14, 1997
  
                               KEY TRONIC CORPORATION
  
         WASHINGTON                   0-11559                     91-0849125
  (STATE OF INCORPORATION)    (COMMISSION FILE NUMBER)        (I.R.S. EMPLOYER 
                                                              IDENTIFICATION NO.)
  
                                  P. O. BOX 14687
                               N. 4424 SULLIVAN ROAD
                             SPOKANE, WASHINGTON 99214
                                   (509) 928-8000
  
                         SECURITIES REGISTERED PURSUANT TO
                          SECTION 12(B) 0F THE ACT:  NONE
  
                         SECURITIES REGISTERED PURSUANT TO
                      SECTION 12(G) OF THE ACT:  COMMON STOCK
  
                       INFORMATION TO BE INCLUDED IN REPORT
  
  ITEM 5.        OTHER EVENTS.
  
  On December 31, 1996, Registrant entered into a secured financing agreement with
  General Electric Capital Corporation.  The agreement contains covenants that
  relate to maximum capital expenditures, minimum debt service coverage, minimum
  earnings before income tax, depreciation, and amortization, and maximum leverage
  percentages.  The agreement contains an $11,000,000 term note and a revolving
  credit line of up to $30,000,000.  The agreement is secured by the assets of the
  corporation.
  
  The term note is payable in quarterly installments of principal, each in the
  amount of $250,000 quarterly commencing in March 1997 and ending in December
  1997.  Thereafter, the quarterly installment payments  of principal will be
  $500,000 commencing in March 1998 and maturing in December 2002.  If debt
  service coverage is greater than 1.4, this note bears interest at one and 
  three-quarters percent (1.75%) in excess of the applicable LIBOR rate.  If 
  debt service coverage is less than or equal to 1.4, this note bears interest 
  at two percent (2.00%) in excess of the applicable LIBOR rate.  At December 
  31, 1996, the applicable interest rate was seven and one-half percent (7.50%).
  
  The revolving loan is renewable and covers an initial period of approximately 
  five years expiring on December 31, 2001.  If debt service coverage is greater 
  than 1.4, the applicable interest rate is one and one-half (1.50%) in excess of 
  the applicable LIBOR rate.  If debt service coverage is less than or equal to 
  1.4, the applicable interest rate is one and three-quarters percent (1.75%) in 
  excess of the applicable LIBOR rate.  At December 31, 1996, the applicable 
  interest rate was seven and one-quarter percent (7.25%).
  
  This agreement replaces a secured term note payable with a current balance of 
  $8.4 million and a $28.0 million secured revolving credit agreement.  The 
  former agreement was entered into on October 24, 1994 with The CIT Group/
  Business Credit, Inc.
  
  ITEM 7.       FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
                EXHIBITS
  
                (c)  EXHIBITS
  
                EXHIBIT    DESCRIPTION
                NUMBER
  
                99.1       Credit Agreement dated as of December 31, 1996 among
                           Key Tronic Corporation and General Electric Capital
                           Corporation.
                           
                99.2       Press Release issued January 7, 1997.
  
                                   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 thereunto duly authorized.
  
                               KEY TRONIC CORPORATION
  
                               /S/ RONALD F. KLAWITTER
  
                               RONALD F. KLAWITTER,
                               Vice President and
                               Chief Financial Officer
  
  Date: January 14, 1997