Blue Bird Corp: amends credit agreement, increases facilities to $600,000,000

What happened

• Blue Bird Corp filed an 8-K reporting it entered into the Second Amendment to Credit Agreement on Sep 30, 2026. The Second Amendment extends the maturity date for both the revolving facility and the term facility to Sep 30, 2031 and increases total availability under the senior secured credit facilities to $600,000,000. On Oct 6, 2026 the company issued a press release announcing the Second Amendment.

Key details

• total senior secured credit facilities increased to $600,000,000 from $250,000,000; total revolving commitment increased to $300,000,000 from $150,000,000.
• term loan limit increased to $300,000,000 delayed draw term loan (DDTL); $214,000,000 available to draw and $86,000,000 outstanding on the existing term loan A transferred into the DDTL; delayed draws available for up to 24 months.
• interest rate margin reduced to SOFR plus 1.25% to 2.25% (based on leverage) from SOFR plus 1.75% to 3.25%; prior 0.10% credit spread adjustment eliminated.
• maximum total net leverage ratio raised to 3.25x with a temporary 0.50x step-up for four quarters following a qualifying acquisition of $75,000,000 or more; accordion expanded to the greater of $250,000,000 or 1.0x trailing twelve-month EBITDA.
• the facilities remain guaranteed by the company’s wholly-owned domestic restricted subsidiaries and are secured by a lien on substantially all assets, subject to customary exceptions; the agreement permits a first priority lien on equipment and assets purchased with a U.S. Department of Energy grant for the Fort Valley, Georgia facility and liens required by lease-buyback tax incentive bonds for that facility.
• separately, on Sep 29, 2026 certain Micro Bird subsidiaries closed a credit agreement with TD Bank providing up to C$35,000,000, secured by a U.S.$30,000,000 letter of credit issued by BMO; the Micro Bird Credit Agreement is not material.

Why it may matter

• Item 1.01 (entry into a material definitive agreement) reports the Second Amendment to the Credit Agreement and the amended facility terms.
• Item 2.03 (creation of a direct financial obligation) reflects the increased borrowing capacity and the delayed draw term loan.
• Item 7.01 (Regulation FD disclosure) notes a press release was furnished regarding the Second Amendment.

This filing does not show why the insider traded or why the company acted.