Woodward, Inc. 8-K

What Happened

• Woodward, Inc. announced on May 28, 2026 that it entered into a Third Amended and Restated Revolving Credit Agreement and a Term Loan Credit Agreement with a syndicate led by Wells Fargo, JPMorgan and others. The revolving facility maintains lender commitments up to $1.0 billion and its termination date was extended from October 21, 2027 to May 28, 2031. Simultaneously, Woodward drew $413 million under the new revolver to repay its prior facility and fees, and borrowed a $250 million term loan (total draws $663 million). Interest rates are based on adjusted term SOFR (or applicable local rates) plus 0.875%–1.75%.

Key Details

• Revolving credit commitments: up to $1,000,000,000; termination extended to May 28, 2031.
• Term loan facility: $250,000,000 principal; maturity May 28, 2031.
• Borrowings on May 28, 2026: $413M revolver draw (to repay prior revolver) + $250M term loan = $663M total.
• Interest: adjusted term SOFR (or SONIA/EURIBOR/TIBOR as applicable) + 0.875%–1.75%; interest payable quarterly.
• Agreements include customary reps, covenants (including a maximum leverage ratio), defaults and acceleration provisions; customary conditions apply to advances and letters of credit.

Why It Matters

• These agreements refinance and extend Woodward’s short‑term bank financing and provide liquidity for operations and working capital through 2031. The new facilities and the $663M initial borrow reduce near‑term refinancing risk but include leverage covenants investors should monitor. Interest margins and covenant terms will affect borrowing cost and financial flexibility; defaults can trigger acceleration of amounts outstanding.