ACME UNITED CORP Enters $65M Syndicated Credit Facility

What Happened
ACME UNITED CORP (ACU) announced on July 15, 2026 that it entered into a new $65 million syndicated revolving credit facility with HSBC Bank USA, N.A. (administrative agent) and City National Bank. The facility replaces ACU’s prior $65 million credit agreement (which was set to expire May 31, 2027), matures on July 15, 2029, and is intended to provide liquidity for growth, acquisitions, dividends and other corporate purposes.

Key Details

• Total facility: $65.0 million; opening outstanding balance on July 15, 2026 was $28.5 million (used to pay off the prior facility).
• Lenders/agent: HSBC Bank USA, N.A. (administrative agent) and City National Bank (a U.S. subsidiary of RBC).
• Interest & fees: Borrowings priced at Term SOFR plus an applicable margin of 2.00%–2.75% (margin tied to Net Funded Debt/EBITDA); commitment fee of 0.25% per annum on unused commitments, paid monthly.
• Security & covenants: Secured by a first-priority lien on substantially all assets; quarterly financial covenants include maximum Net Funded Debt to EBITDA of 3.75:1 and minimum Fixed Charge Coverage Ratio of 1.10:1. Usual events of default (payment, covenant breach, cross-default, bankruptcy, change of control) permit acceleration.

Why It Matters
This new credit facility establishes ACME UNITED’s committed borrowing capacity through mid-2029 and sets the company’s near-term financing terms (interest spread, fees, and covenants). For investors, the agreement affects liquidity and financial flexibility for M&A, dividends, and operations, and imposes leverage and coverage tests that the company must meet each quarter.