MOHAWK INDUSTRIES INC 8-K

What Happened

• Mohawk Industries announced on May 12, 2026 that it entered into a New Credit Agreement to replace and refinance its prior credit facility. The new facility provides unsecured revolving credit commitments with an initial aggregate capacity of up to $1,500,000,000 and is administered by JPMorgan Chase Bank, N.A. and J.P. Morgan SE. The facility will fund repayment of the existing credit agreement, pay transaction fees, and support working capital and general corporate purposes. The Company terminated and repaid its prior Second Amended and Restated Credit Agreement with Wells Fargo.

Key Details

• Initial capacity: $1,500,000,000 of revolving commitments, including a $125,000,000 letter of credit sublimit and $150,000,000 in swingline loans; accordion feature to add up to $600,000,000 subject to conditions.
• Maturity and extensions: scheduled to mature May 12, 2031, with the Company able to extend maturity up to two times for up to five years each.
• Pricing & fees: U.S. dollar loans priced at Term SOFR + 0.750%–1.250% (or Base Rate + 0.000%–0.250%); alternative currency loans have similar spreads; commitment fee ranges from 0.055%–0.150% per annum. Margins and fees adjust based on Mohawk’s Consolidated Net Leverage Ratio or its senior unsecured/corporate family rating.
• Covenants & security: obligations are unsecured; loans are guaranteed by related domestic and foreign borrowers. The agreement includes customary affirmative/negative covenants and an ongoing Consolidated Interest Coverage Ratio requirement of at least 3.50 to 1.00. Events of default allow lenders to suspend commitments, terminate the facility or accelerate repayment.

Why It Matters

• The new agreement secures near‑term liquidity and extends the company’s debt maturity profile through 2031 (with extension options), while refinancing the prior facility.
• Borrowing costs are variable and tied to market rates (Term SOFR/Base Rate) and to Mohawk’s leverage or credit ratings, so higher leverage or rating declines would raise interest and fees.
• The facility is unsecured and includes covenants (including a 3.5x interest coverage test) that the company must meet; breaches could restrict financial flexibility and trigger lender remedies.

Keywords: new credit agreement, revolving credit, refinance, Term SOFR, $1.5B, accordion, maturity 2031, interest coverage covenant.