COLUMBUS MCKINNON CORP 8-K

What Happened

• Columbus McKinnon Corp. announced on Feb 3, 2026 that it completed the acquisition of Kito Crosby for approximately $2.7 billion in cash. To fund the transaction and related activities the company entered a New Credit Agreement, issued senior secured notes and sold preferred shares to CD&R.
• Key financing actions: a New Credit Agreement providing a $1.65 billion Term Loan B and a $500.0 million revolving facility (entered Feb 3, 2026); issuance of $900.0 million 7.125% Senior Secured Notes due Feb 1, 2033 (closed Jan 30, 2026; guaranties added Feb 3, 2026); and sale of 800,000 Series A Cumulative Convertible Participating Preferred Shares to CD&R for $800.0 million (Feb 3, 2026). The company also terminated its prior credit agreement and a prior debt commitment letter.

Key Details

• Acquisition price: $2.7 billion in cash, subject to customary adjustments; closing date Feb 3, 2026.
• New credit facilities: $1,650.0M Term Loan B (7‑year maturity, quarterly 0.25% amortization; margin 3.50% over term SOFR) and $500.0M Revolving Facility (5‑year maturity; margin 2.25%–3.25% over term SOFR depending on leverage; commitment fees 0.40%–0.55%).
• Notes & security: $900.0M 7.125% Senior Secured Notes due 2033; after closing the notes are secured and jointly and severally guaranteed by certain U.S. subsidiaries.
• Strategic investor and corporate changes: CD&R acquired $800M of preferred shares, gained registration rights, and (per the Investment Agreement) the Board appointed three CD&R‑affiliated directors (Michael Lamach, Nathan K. Sleeper, Andrew Campelli).

Why It Matters

• Capital structure and leverage: The transaction materially increases funded debt and adds secured, first‑lien obligations and a Term Loan B. Investors should note the new covenants (including Consolidated First Lien Leverage Ratio step‑downs) and mandatory/voluntary prepayment mechanics (including excess cash flow prepayments that can be 50% stepping down to 25%/0% based on leverage).
• Control and governance: CD&R’s $800M preferred investment, board appointments and registration/preemptive rights give it meaningful economic and governance influence (preferreds carry a 7.0% dividend and convert at an initial price of $37.68 with conversion/vote limits).
• Security and priority: The Notes and New Credit Agreement are secured by substantially all assets of the company and material domestic subsidiaries, which changes creditor priority versus prior unsecured debt.
• Next filings: Columbus McKinnon will file required financial statements and pro forma financial information for the acquired business within the SEC timeline (to be filed by amendment).

This summary focuses on the material financing, governance and acquisition terms disclosed in the Form 8‑K.