NOVANTA INC 8-K

What Happened
On May 15, 2026, Novanta Inc. and certain subsidiaries entered into a Second Amendment to their Fourth Amended and Restated Credit Agreement with Bank of America, N.A. (as Administrative Agent) and other lenders. The amendment establishes $200.0 million of delayed-draw term loan commitments (the “2026 Delayed Draw Term Loan Commitments”) that Novanta can borrow against at its option for up to six months after the amendment date. The Delayed Draw Term Loans will mature June 27, 2030 and carry interest tied to either the Base Rate plus a margin (0.00%–0.75%) or to SOFR/SONIA/EURIBOR plus a margin (1.00%–1.75%), determined by Novanta’s consolidated leverage ratio. The amendment also resets how incremental term loan and revolver capacity is measured going forward.

Key Details

• $200.0 million delayed-draw term loan commitments, available to borrow for up to six months after May 15, 2026.
• Maturity date: June 27, 2030.
• Interest: Base Rate + 0.00%–0.75% or SOFR/SONIA/EURIBOR + 1.00%–1.75%, margin tied to Novanta’s consolidated leverage ratio.
• Commitment fee applies on undrawn commitments; amortization begins quarterly around the fiscal quarter ending Sept 25, 2026 (minimum quarterly amortization 0.625% through June 25, 2027, then at least 1.25% thereafter).

Why It Matters
This amendment gives Novanta additional committed liquidity capacity ($200M) that it may draw, which can be important for funding operations, investments, or acquisitions. If drawn, the new loans will create a material financial obligation that could increase leverage and interest expense; the actual borrowing cost will depend on Novanta’s leverage ratio. The filing does not disclose any intended use of the funds. Investors should watch whether and when Novanta draws on the facility and how that impacts leverage, interest costs, and liquidity.