Perma-Pipe Enters $89M Credit Facility, Expandable to $139M

What Happened
Perma-Pipe International Holdings, Inc. announced on August 25, 2026 that it entered into a new Credit Agreement with JPMorgan Chase Bank, N.A. as administrative agent. The new facility replaces and terminates the Company’s prior credit agreement dated April 8, 2026; all borrowings under the prior agreement were repaid at closing. The new secured credit package provides a $75.0 million revolving credit facility (including up to $30.0 million for letters of credit and a $5.0 million swingline) and a $14.0 million term loan. On the closing date the Company drew the $14.0 million term loan and had $23.0 million outstanding under the revolver. The facility matures on August 25, 2031.

Key Details

• Closing date: August 25, 2026; lender/agent: JPMorgan Chase Bank, N.A.
• Facility size: $75.0M revolver + $14.0M term loan = $89.0M initial capacity; Company may request up to $50.0M of additional commitments (expandable capacity up to $139.0M).
• Pricing and fees: interest based on Alternate Base Rate or term benchmarks (e.g., Adjusted Term SOFR) plus margin (Alternate Base Rate margin 1.50%–2.00%; term benchmark margin 2.50%–3.00%); unused commitment fee 0.20%–0.30%.
• Covenants and security: guaranteed by certain subsidiaries, secured by liens on collateral; financial covenants require consolidated leverage ratio ≤ 3.00x and fixed charge coverage ratio ≥ 1.25x. Term loans amortize quarterly starting Sept 30, 2026; remaining principal due at maturity.

Why It Matters
This filing creates a material, secured borrowing commitment and replaces the prior credit agreement, improving the company’s committed liquidity and refinancing near-term debt. The proceeds were used to repay the prior facility, and the new agreement gives Perma-Pipe flexibility to fund working capital, permitted acquisitions or other investments. Investors should note the financial covenants (leverage and coverage ratios), the secured nature of the debt, scheduled amortization of the term loan, and interest/fee structure — all of which affect cash flow needs and potential constraints on the company’s future financing and capital decisions.