STONERIDGE INC 8-K

What Happened

• Stoneridge, Inc. announced on March 6, 2026 (filed via 8-K on March 11, 2026) that it entered Amendment No. 3 to its Fifth Amended and Restated Credit Agreement with PNC Bank, as administrative agent. The amendment restates the Credit Facility effective December 31, 2025 and extends the facility’s termination date to July 1, 2027. It also revises financial covenants, the definition of Consolidated EBITDA, and certain affirmative covenants.

Key Details

• Credit facility maturity extended from November 2, 2026 to July 1, 2027 (Amendment dated March 6, 2026).
• Interest coverage ratio (minimum) temporarily reduced from 2.50 to: 1.60 (Q ended Mar 31, 2026), 1.70 (Q ended Jun 30, 2026), 1.75 (Q ended Sep 30, 2026), and back to 2.50 for Q ended Dec 31, 2026 and thereafter.
• Maximum leverage ratio increased temporarily to: 3.75 (Q ended Dec 31, 2025), 6.25 (Mar 31, 2026), 6.75 (Jun 30, 2026), 6.00 (Sep 30, 2026), and 4.00 (Dec 31, 2026 and thereafter).
• Current borrowing capacity of $175.0 million will be reduced on December 31, 2026 to the lesser of $157.5 million or the then-current Credit Facility commitment.

Why It Matters

• The extension to July 1, 2027 gives Stoneridge additional runway to manage liquidity and pursue refinancing or operational improvements before the facility expires.
• Near-term covenant relief (lower interest coverage requirements and higher allowable leverage) reduces the risk of covenant breach in 2026 if cash flow or EBITDA are weak, but the scheduled borrowing-capacity cut on Dec 31, 2026 tightens available liquidity heading into 2027.
• Changes to the EBITDA definition and affirmative covenants can affect how financial performance is measured for covenant tests; investors should monitor quarterly results, cash flow, leverage metrics, and any future refinancing activity.