KENNAMETAL INC 8-K

What Happened
Kennametal Inc. announced on May 28, 2026 that it amended its revolving credit facility and entered into a new term loan. The company increased its existing revolving credit commitments from $650 million to $850 million via a First Amendment, and entered a $500 million unsecured delayed‑draw Term Loan Credit Agreement with a syndicate of banks.

Key Details

• Revolver increased to $850 million (up $200M from $650M); lenders added First National Bank of Pennsylvania. Revolver maturity (Termination Date): November 17, 2030.
• Revolver sublimits: $50M for letters of credit; $100M swingline capacity ($75M for Kennametal Inc., $25M for Kennametal Europe); $300M multicurrency borrowings; foreign‑borrower sublimit $250M. Revolver can be increased by up to $100M with lender consent or new lenders.
• Term loan: $500 million unsecured delayed‑draw facility, drawable in up to three draws through the commitment period (ends no later than September 30, 2026); matures 3 years after the initial term‑loan borrowing. Incremental term loans allowed up to $100M subject to conditions.
• Pricing & fees: interest rates tied to Term SOFR or ABR plus margins per the Pricing Grid; ticking fee applies on unutilized term‑loan commitments starting 60 days after closing; customary facility and letter‑of‑credit fees apply.
• Covenants & guarantees: both agreements include a rolling four‑quarter Consolidated Leverage Ratio cap of 3.75:1 (with limited temporary adjustments for qualified acquisitions). A significant domestic subsidiary and the company guarantee certain borrower obligations. Standard events of default and acceleration provisions apply (including thresholds of $100M for certain indebtedness and judgments).

Why It Matters
These transactions increase Kennametal’s near‑term liquidity and provide a new $500M committed term facility plus larger revolver capacity, giving the company more financial flexibility for working capital, acquisitions, or other corporate needs. The agreements impose customary financial covenants (notably the 3.75:1 leverage cap) and fees tied to market rates, which investors should monitor as they affect borrowing costs and balance‑sheet flexibility.