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|8-KFeb 17, 4:24 PM ET

CORE MOLDING TECHNOLOGIES INC 8-K

Research Summary

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Updated

Core Molding Technologies Amends Credit Agreement; $10M Sustaining CapEx Cap

What Happened
Core Molding Technologies, Inc. (CMT) announced it entered into a First Amendment to its Credit Agreement with The Huntington National Bank and the lenders on February 10, 2026, effective December 31, 2025. The Amendment changes how certain capital expenditures are defined and how the Fixed Charge Coverage Ratio is calculated. The company says the Amendment is not a refinancing, novation, or repayment of existing secured obligations.

Key Details

  • The prior definition of “Consolidated Unfunded Capital Expenditures” was replaced with a new “Sustaining Capital Expenditures” definition, capped at $10.0 million aggregate. Sustaining CapEx covers spending to maintain, repair, replace, or sustain existing production assets.
  • The Fixed Charge Coverage Ratio calculation was revised to allow deductions from Consolidated EBITDA for: (a) Sustaining Capital Expenditures, (b) Capital Distributions and other Restricted Payments actually made, and (c) net Consolidated income tax expense paid in cash.
  • The Amendment limits aggregate operating lease rental payments across the Company to $5.0 million per fiscal year.
  • The Amendment includes customary representations, reaffirmations of existing loan documents, conditions precedent and releases in favor of the administrative agent and lenders.

Why It Matters
These changes directly affect covenant metrics and how CMT’s available cash is measured for lender tests. The $10.0 million Sustaining CapEx cap and the $5.0 million operating lease limit set clear ceilings on certain cash uses, while the altered Fixed Charge Coverage Ratio formula may change the company’s reported covenant compliance by allowing specific deductions. Investors should note this may influence CMT’s flexibility to fund maintenance versus growth projects, make distributions, and manage liquidity; the amendment does not extinguish or refinance the secured debt. Watch future filings for covenant compliance updates and any disclosures on how these limits affect capital plans.