CECO ENVIRONMENTAL CORP 8-K

What Happened
CECO Environmental Corp announced on January 30, 2026 that it entered into a Fourth Amended and Restated Credit Agreement providing a senior secured revolving credit facility with an initial aggregate commitment of up to $700.0 million, with Bank of America, N.A. as administrative agent. The Credit Facility matures on January 30, 2031 and replaced the company’s prior credit agreement dated October 7, 2024.

Key Details

• Effective date: January 30, 2026. Agent: Bank of America, N.A.
• Initial facility size: $700.0 million, with the company able to increase commitments by up to $150.0 million plus any additional amount permitted under the leverage test (subject to lender consent).
• Outstanding borrowings at signing: $235.8 million, leaving approximately $464.2 million of undrawn capacity initially (700.0 − 235.8).
• Interest: variable pricing tied to the Company’s Consolidated Net Leverage Ratio and market reference rates (e.g., SOFR, EURIBOR, CORRA, prime or fed funds), with applicable spreads that vary by loan type (base-rate loans spreads ~0.50%–2.00%; other loans spreads ~1.50%–3.00%, plus the applicable reference rate).
• Financial covenants: Consolidated Net Leverage Ratio ≤ 4.00x; Consolidated Secured Net Leverage Ratio ≤ 3.50x; Consolidated Fixed Charge Coverage Ratio ≥ 1.25x. Temporary covenant step-ups to 4.50x / 4.00x are available following qualifying acquisitions ≥ $40.0 million for up to four quarters.
• Use of proceeds: general corporate purposes. The agreement includes customary events of default and usual representations, warranties and covenants.

Why It Matters
This new credit agreement secures multi-year committed liquidity for CECO through January 2031, supporting operations, refinancing flexibility and potential acquisitions. The facility’s covenant levels and pricing tie the company’s borrowing costs and future capacity to its leverage metrics, so maintaining covenant compliance will be important for preserving borrowing flexibility. The roughly $464 million of initial undrawn capacity (before any letters of credit or other uses) gives CECO material near-term access to cash for working capital or strategic needs.