Karman Holdings Inc. Amends Credit Agreement, Lowers Interest Rates

What Happened
Karman Holdings Inc. announced on Aug 3, 2026 (filed via Form 8-K Aug 6, 2026) that it entered into a Fifth Amendment to its Credit Agreement with Citibank, N.A. as Administrative Agent. The company refinanced its existing term loans totaling $763,961,000 and reduced interest pricing under the facility.

Key Details

• The Fifth Amendment refinanced term loans in the aggregate principal amount of $763,961,000.
• Interest on the refinanced term loans was reduced by 50 basis points, to SOFR + 2.25%.
• Interest pricing on the revolving credit facility was also lowered by 50 basis points for each leverage-based pricing tier; the highest tier is now SOFR + 2.00%.
• The Credit Agreement originally dated April 1, 2025, remains in effect except for changes made by this Fifth Amendment.

Why It Matters
Lowering interest rates on the term loans and revolver reduces Karman’s borrowing costs, which can decrease interest expense and improve cash flow available to the business. For investors, this change may modestly improve near-term earnings and liquidity flexibility without altering other material credit terms disclosed previously. The filing confirms the amendment is documented (Exhibit 10.1) but does not indicate other changes to covenant structure or collateral beyond what the amendment specifies.