Franklin Resources Inc Enters Amended $1.5B Revolving Credit Agreement

What Happened

• Franklin Resources, Inc. (BEN) announced on July 30, 2026 that it entered into a Second Amended and Restated Credit Agreement with Bank of America, N.A. as administrative agent and a syndicate of lenders. The agreement creates a five‑year revolving credit facility with $1,500,000,000 of aggregate commitments, with an option to increase commitments by up to $500,000,000, and extends the maturity to July 30, 2031. Concurrently, the company terminated its prior $1.5 billion credit agreement (which had an April 30, 2030 maturity). As of the closing date, $700,000,000 was outstanding and has been rolled into the new facility.

Key Details

• Facility size: $1,500,000,000 revolving commitments, plus option to increase by $500,000,000.
• Outstanding borrowings rolled into new facility: $700,000,000 as of July 30, 2026.
• Pricing: borrower may choose Base Rate or Term SOFR; Applicable Rate margins range from 0.00%–0.25% (Base Rate loans) or 0.625%–1.25% (Term SOFR loans), depending on the company’s Debt Rating; Term SOFR floor 0.00%. Commitment fee on unused capacity: 0.050%–0.120% annually.
• Covenants and defaults: customary affirmative/negative covenants and events of default; includes a financial covenant requiring consolidated net leverage ratio ≤ 3.25:1.00 (subject to certain acquisition adjustments), measured quarterly.

Why It Matters

• Liquidity and runway: the new five‑year facility secures access to up to $1.5B of revolving liquidity (with a $500M increase option), providing flexibility for general corporate purposes, cash management and potential opportunistic uses.
• Cost and covenant profile: interest margins, commitment fees and a leverage covenant may affect borrowing costs and financial flexibility; investors should note the leverage test (≤ 3.25x) and default triggers that could accelerate repayment.
• Near‑term impact: the transaction simply replaces and extends the prior credit agreement and rolls existing $700M of debt into the new facility, so it does not by itself change reported debt beyond the lender/term structure but does set the company’s borrowing terms and maturity profile through 2031.

Exhibit 10.1 to the 8‑K contains the full credit agreement for complete terms.