Gentherm Inc 8-K

What Happened
Gentherm Inc. announced on June 29, 2026 that it and certain subsidiaries entered into a Third Amended and Restated Credit Agreement with Bank of America, N.A. as administrative agent and the lenders party thereto. The agreement replaces Gentherm’s prior credit agreement and establishes a $550 million secured five‑year revolving credit facility with customary guarantees and security over substantially all U.S. borrowers’ assets.

Key Details

• Facility size and term: $550 million secured revolving credit facility for five years; effective June 29, 2026.
• Sublimits: $50 million swing line sublimit and $30 million letter of credit sublimit.
• Pricing: Borrowings priced at either (a) term rates (term SOFR, term CORRA, EURIBOR or SONIA) + margin of 1.125%–2.000% (based on consolidated net leverage) or (b) base rate + margin of 0.125%–1.000%; commitment fee 0.150%–0.250% per annum (quarterly).
• Guarantees, security and covenants: Obligations unconditionally guaranteed by certain U.S. wholly‑owned subsidiaries and secured by substantially all assets of the U.S. borrowers and guarantors; German and other foreign subsidiaries guarantee non‑U.S. obligations. Agreement includes customary affirmative/negative covenants and financial covenants (minimum consolidated interest coverage ratio and maximum consolidated net leverage ratio).

Why It Matters
This new credit facility materially increases Gentherm’s committed liquidity and borrowing flexibility through mid‑2020s, which can support operations and corporate initiatives. The pricing is tied to the company’s consolidated leverage, so interest cost will vary with Gentherm’s leverage levels. The guarantees and security provisions mean the facility is backed by significant company assets, and the covenants and financial tests could limit certain actions or require covenant compliance — factors investors should monitor as Gentherm progresses with its disclosed proposed transaction with Modine and SpinCo (Gentherm filed a Form S‑4 on July 2, 2026).