ALAMO GROUP INC 8-K

What Happened
Alamo Group Inc. announced on May 27, 2026 that it entered a Fourth Amended and Restated Credit Agreement with Bank of America, N.A. as Administrative Agent. The agreement provides up to $602,500,000 of borrowing capacity, of which the company has drawn $202,500,000 as a term loan and has access to a $400,000,000 revolving facility that terminates in five years. Domestic subsidiaries serve as guarantors.

Key Details

• Total facility size: $602,500,000 (Term loan $202,500,000 drawn; Revolving facility up to $400,000,000).
• Term and maturity: Five-year facilities, expiring May 27, 2031. Term loan principal paid in equal quarterly installments of $1,265,625, with remaining balance due at maturity.
• Interest and fees: Borrowings can be at a base rate or Term SOFR (1-, 3- or 6-month), plus margin. Margins: 1.25%–2.25% for Term SOFR/letters of credit and 0.25%–1.25% for base rate, based on consolidated net leverage. Commitment fee on unused revolver: 0.125%–0.30%.
• Covenants: Requires maintenance of a maximum consolidated net leverage ratio and a minimum consolidated fixed charge coverage ratio; includes customary limitations on indebtedness, investments, liens and dispositions.

Why It Matters
This credit agreement affects Alamo Group’s liquidity and debt profile: the company has immediate access to sizable revolving capacity ($400M) and has increased outstanding term debt by $202.5M. Interest costs will vary with the chosen rate (base vs. Term SOFR) and the company’s leverage, and the financial covenants could limit capital allocation or acquisitions if ratios weaken. Investors should note the scheduled principal amortization and the five-year maturity when assessing near- and medium-term cash flow and leverage plans.