STANLEY BLACK & DECKER, INC. 8-K

What Happened

• Stanley Black & Decker, Inc. announced on June 18, 2026 that it entered into two new credit agreements: a $1.0 billion 364‑Day Credit Agreement and an Amended and Restated Five Year Credit Agreement with a $2.0 billion revolving credit facility. Citibank, N.A. is administrative agent, with several major banks as lead arrangers and syndication agents.
• None of the credit lines were drawn at closing. The company also terminated the prior 364‑day credit agreement dated June 23, 2025. By entering these agreements, the company created new direct financial obligations under these facilities.

Key Details

• Total available capacity: $3.0 billion ( $1.0B 364‑day facility + $2.0B five‑year revolver). The five‑year facility includes a Euro‑denominated swing line sub‑limit equal to the Euro equivalent of $800 million.
• Repayment/term: 364‑day facility advances must be repaid by the earlier of June 17, 2027 or termination of commitments; outstanding advances may be converted to a term loan repayable within one year. Five‑year revolver matures June 18, 2031, with the company able to request one‑year extensions in 2027 and 2028 (lenders can decline).
• Pricing and currencies: Borrowings under the facilities may be made in USD and EUR (364‑day); USD, EUR or GBP (5‑year). Interest options include Base Rate, EURIBO, Term SOFR and SONIA, plus applicable margins.
• Covenants: Both agreements include customary covenants and events of default. Material financial covenant: an interest coverage ratio of at least 3.50:1.00 for each rolling four‑quarter period, temporarily reduced to 2.50:1.00 for any four‑quarter period ending on or before the company’s second fiscal quarter of 2026. The company may add back certain adjustment items to EBITDA, but aggregate addbacks are capped at $250 million for applicable early periods.

Why It Matters

• These agreements provide committed liquidity and flexibility — a short‑term $1B facility plus a larger multi‑year $2B revolver — which can support working capital, refinancing and general corporate needs without immediate draws.
• The covenants (notably the interest coverage ratio and the $250M cap on addbacks) are important constraints investors should monitor; breaches could trigger defaults and require acceleration of borrowings.
• No immediate cash was raised at signing, so near‑term balance sheet impact is limited to having these facilities available as backstops.