HEXCEL CORP /DE/ 8-K

What Happened Hexcel Corporation (HXL) announced on March 31, 2026 that it entered into a new credit agreement for a $750 million revolving credit facility (the “Revolver”) that matures March 31, 2031. On the same date Hexcel borrowed $300 million under the new Credit Agreement and used the proceeds to repay and terminate its prior credit facility (which had been scheduled to expire April 25, 2028); no early termination penalties were incurred.

Key Details

• Revolver size: $750 million; initial borrowing: $300 million on March 31, 2026 to refinance prior facility.
• Maturity: March 31, 2031. Up to $50 million of the Revolver may be used for letters of credit.
• Interest: option of SOFR-based or base-rate loans. Initial Applicable Margin: 1.125% for SOFR borrowings and 0.125% for base rate borrowings; SOFR subject to a 0.00% floor.
• Flexibility: Hexcel may add term loans or increase the revolving commitment in an aggregate amount not to exceed $500 million.
• Covenants: customary restrictions (incurrence of subsidiary debt, liens, major asset sales) plus financial covenants requiring a minimum interest coverage ratio and a maximum consolidated net leverage ratio; defaults could accelerate repayments and end lender commitments.

Why It Matters This refinancing extends Hexcel’s secured liquidity runway to 2031 and provides up to $750M in committed capacity for general corporate purposes (including acquisitions, investments and debt repayments). The initial $300M draw eliminated the prior facility without penalty. Investors should note borrowing cost is variable and tied to SOFR or base rates plus an Applicable Margin that can change based on Hexcel’s public debt rating or leverage metrics, and the credit agreement includes covenants that, if breached, could lead to acceleration of debt.