Ultra Clean Holdings, Inc. 8-K

What Happened

• On April 23, 2026, Ultra Clean Holdings, Inc. entered into a Tenth Amendment to its Credit Agreement (administrative agent: Barclays Bank PLC). The amendment refinanced revolving credit commitments in the aggregate principal amount of $250 million and extended the revolving facility maturity to April 23, 2031. The facility also permits up to $50 million in letters of credit and potential future increases subject to the agreement’s “Incremental Availability Amount.”
• Revolving loans will bear interest at the Company’s option based on Term SOFR or ABR plus an applicable margin tied to the Company’s Consolidated Secured Net Leverage Ratio. The amendment imposes quarterly financial covenants, including a maximum Consolidated Secured Net Leverage Ratio of 3.25:1 (3.75:1 following a Material Acquisition) and a minimum Cash Interest Coverage Ratio of 3.00:1.

Key Details

• Amendment date: April 23, 2026.
• Revolving commitments: $250 million; maturity extended to April 23, 2031.
• Letters of credit capacity: up to $50 million.
• Financial covenants: Consolidated Secured Net Leverage Ratio ≤ 3.25:1 (or ≤ 3.75:1 after a Material Acquisition); Cash Interest Coverage Ratio ≥ 3.00:1.
• Interest options: Term SOFR or ABR + margin based on leverage; customary reps, covenants and events of default apply.

Why It Matters

• The amendment secures and extends near-term liquidity for Ultra Clean through a $250M revolver and letter-of-credit capacity, providing financing flexibility through 2031.
• The new financial covenants and negative covenants (limits on additional debt, liens, certain acquisitions, asset disposals, affiliate transactions, etc.) can limit the company’s flexibility if leverage rises or cash coverage weakens, so investors should monitor quarterly covenant compliance.
• The facility allows for incremental borrowings subject to terms, which could be used for growth or to manage cash needs, but also creates secured debt obligations that affect capital structure.