Lifetime Brands, Inc. Amends ABL Facility and Closes $60M Term Loan

What Happened
Lifetime Brands, Inc. announced on August 17, 2026 that it entered Amendment No. 3 to its asset‑based lending (ABL) Credit Agreement and simultaneously closed a $60.0 million second‑lien Term Loan. The amended ABL Revolving Credit Facility provides aggregate commitments of $200.0 million (U.S. $160.0M; U.K. $35.0M; Dutch $5.0M) with a maturity date of August 17, 2031 and an accordion feature to increase commitments up to $300.0 million if conditions are met. The $60.0M Term Loan also matures August 17, 2031 and funded in full on the effective date.

Key Details

• ABL Revolver: $200.0M aggregate revolving commitments (160M US / 35M UK / 5M NL); maturity August 17, 2031; potential increase to $300.0M.
• Pricing: margins vary by rate and availability; margins fixed through the quarter ending on or about Sept 30, 2026 at 0.75% for alternate base rate loans and 1.75% for term benchmark/RFR and overnight swingline loans.
• Term Loan: $60.0M second‑lien loan; quarterly principal payments of 1.25% begin Oct 1, 2027; remaining balance due at maturity Aug 17, 2031. Interest is Term SOFR (or, rarely, base rate) plus a margin that ranges (based on ABL availability) roughly 6.75%–7.25% for SOFR loans (7.75%–8.25% for base rate).
• Covenants: ABL includes a Fixed Charge Coverage Ratio (FCCR) covenant requiring FCCR ≥ 1.10x during FCCR Test Periods; Term Loan contains a springing FCCR covenant (1.10x) and requires Adjusted EBITDA (trailing 12 months, with specified adjustments) of at least $30.0M when tested.
• Use of proceeds: ABL and Term Loan proceeds used to refinance existing term loan indebtedness, pay transaction costs, and for working capital and general corporate purposes. Company also issued a press release announcing the transactions on Aug 17, 2026.

Why It Matters
These transactions extend and restructure Lifetime Brands’ credit profile through 2031 and provide liquidity flexibility by combining a $200M revolver with a $60M term loan. Investors should note the material covenants (FCCR and a $30M Adjusted EBITDA threshold) and the relatively high spread on the Term Loan, which reflects cost of second‑lien financing. The amendment’s fixed margin pricing through late Q3 2026 gives some short‑term certainty on interest costs; longer‑term margins will depend on availability and market benchmarks.