ADVANCED DRAINAGE SYSTEMS, INC. 8-K

What Happened
Advanced Drainage Systems, Inc. announced on February 27, 2026 that it issued $500.0 million of 5.375% senior notes due March 1, 2034 (the “Notes”) under an Indenture with U.S. Bank Trust Company, N.A. as trustee. The Notes are guaranteed by its domestic subsidiaries that guarantee its senior secured credit facility. The company also filed a Fourth Amendment to its Credit Agreement that (among other changes) increases the revolving facility, adds a new term facility, and revises pricing and covenant baskets. On the same date the company redeemed in full its outstanding 5.000% senior notes due 2027 (original principal $350.0 million) at 100% of principal plus accrued interest.

Key Details

• $500.0M of 5.375% senior notes due March 1, 2034; interest paid semi‑annually beginning Sept 1, 2026.
• Proceeds (together with the Term B portion of the credit facility) will refinance the outstanding credit facility and fully redeem the $350M 5.000% notes due 2027; remaining proceeds for general corporate purposes.
• Fourth Amendment highlights: Revolving Facility increased from $600M to $750M (LC sub‑limit $50M → $75M); new Term Facility of $600M maturing Feb 28, 2033; Revolver maturity extended to Feb 27, 2031.
• Pricing/margins adjusted (examples: Initial Term Loans: 162.5 bps Term Benchmark / 62.5 bps base rate; Revolver: 125–225 bps Term Benchmark / 25–125 bps base rate, based on leverage); incremental facilities up to the greater of $350M or 100% of trailing four‑quarter EBITDA.

Why It Matters
These transactions extend and reprice the company’s debt maturity profile, replacing near‑term 2027 maturities with longer‑dated debt (2033 term loan and 2034 notes) and increasing revolving liquidity to $750M. For investors, that typically reduces near-term refinancing risk and provides additional financial flexibility, while locking in a fixed coupon of 5.375% on the new senior notes. The filings reflect standard covenants, guarantees by key subsidiaries, and customary redemption features (including make‑whole and limited equity‑offering call options).