Enerpac Tool Group Corp. has entered into an Amended and Restated Credit Agreement dated October 16, 2026. The agreement replaces the company’s previous credit facility, which was set to mature on September 9, 2027.
The new agreement establishes a $550 million revolving credit facility, which includes a sublimit of $200 million for borrowings in foreign currencies such as Euros or Pounds Sterling. It also includes a $300 million term loan. The total facilities have a maturity date of October 16, 2031.
The $300 million term loan is subject to a specific repayment schedule. Borrowers must pay $0.9375 million in principal per quarter starting March 1, 2028. This amount increases to $1.875 million per quarter beginning March 1, 2029, and rises to $3.750 million per quarter starting March 1, 2030. The remaining balance is due at maturity.
Interest on the new debt is initially set at term SOFR plus 1.125% per annum. The interest rate spreads are subject to adjustments based on the company’s net leverage ratio, ranging from 1.125% to 1.875% for SOFR-based loans and from 0.125% to 0.875% for base rate loans. A non-use fee on the revolving credit facility also varies based on the leverage ratio, ranging from 0.150% to 0.275% per annum.
The agreement includes financial covenants that require the company to maintain a net leverage ratio of no more than 3.75 to 1.00, or 4.25 to 1.00 under specific conditions. Additionally, the company must maintain an interest coverage ratio of at least 3.00 to 1.00. The credit facility is secured by substantially all personal property assets of the company and its domestic subsidiaries, as well as certain equity interests in those subsidiaries.
