FLOWSERVE CORP 8-K

What Happened
Flowserve Corporation (FLS) filed an 8‑K on April 15, 2026 announcing a Third Amended and Restated Credit Agreement with Bank of America, N.A. as administrative agent and other lenders. The new facility provides a $1,000.0 million unsecured revolving credit facility (with a $750.0 million letters-of-credit sublimit and $30.0 million swing line sublimit) and an unsecured term loan facility of up to $450.0 million. Both the revolver and term loan mature on April 15, 2031. On the closing date Flowserve drew approximately $450.0 million under the term loan and approximately $250.0 million under the revolver to refinance existing debt and for general corporate purposes; outstanding letters of credit under the prior agreement were transferred to the new facility.

Key Details

• Total revolver: $1,000.0 million; option to increase by up to $400.0 million subject to lender approval.
• Term loan: up to $450.0 million; draws of ≈$450.0M made on closing.
• Closing-date draws: ≈$250.0M under revolver and ≈$450.0M under term loan to refinance prior debt.
• Maturity: April 15, 2031.
• Pricing: Term SOFR + 1.00%–1.75% (or Base Rate + 0.00%–0.75%), with initial pricing at Term SOFR + 1.375% (or Base Rate + 0.375%).
• Commitment fee on unused revolver: 0.080%–0.250% (quarterly, in arrears), depending on credit ratings.
• Covenants: customary reps/warranties, affirmative/negative covenants and events of default, including maintenance of consolidated net leverage and interest coverage ratios; lenders may accelerate debt on default.

Why It Matters
This refinancing extends Flowserve’s borrowing runway to 2031 and resets interest and fee terms tied to the company’s credit ratings, which affects future interest costs. The new facility provides sizable liquidity (a $1.0B revolver with room to increase) and replaces the prior credit agreement, while the immediate draws reduced outstanding prior indebtedness. Investors should note the variable-rate structure and financial covenants (leverage and interest coverage) that could affect flexibility and cost of capital if Flowserve’s ratings or financial performance change.