Simpson Manufacturing Co., Inc. 8-K

What Happened
Simpson Manufacturing Co., Inc. (filed 8-K on 2025-12-22) announced it entered into a Second Amended and Restated Credit Agreement with Wells Fargo as administrative agent and a syndicate of lenders. The agreement amends and restates the company’s prior credit agreement (originally dated March 30, 2022) and establishes a five‑year revolving credit facility of $600,000,000 (including a $50,000,000 letter of credit subfacility) and a five‑year $300,000,000 term loan. The term loan was used at closing to refinance existing indebtedness and to pay related fees and expenses; the revolver is available for permitted acquisitions, investments, working capital and general corporate purposes.

Key Details

• Total committed capacity at signing: $900,000,000 ( $600M revolver + $300M term loan); both facilities mature in 5 years.
• Ability to increase commitments by the greater of $525,000,000 and 100% of the company’s most recent-quarter consolidated EBITDA, subject to lender commitments and customary conditions.
• Pricing: interest based on Base Rate, SOFR (daily or term), Eurocurrency or other specified rates plus a margin that varies with the company’s net leverage ratio (example ranges: term loan margins 0.00%–1.75%; revolver margins 0.00%–1.50% depending on rate type and currency).
• Fees and covenants: quarterly-determined annual commitment fee on revolver of 0.10%–0.25% (based on leverage); customary affirmative and negative covenants; financial maintenance covenants require consolidated net leverage ≤3.50:1.00 (option to step to 4.00:1.00 for four quarters after certain acquisitions) and consolidated interest coverage ≥2.50:1.00.

Why It Matters
This filing shows Simpson secured multi‑year liquidity and refinanced existing debt, which reduces near-term refinancing risk and provides capacity for acquisitions and working capital. Investors should note the financial covenants (leverage and interest coverage) and variable interest margins tied to leverage — these can affect borrowing costs and strategic flexibility if Simpson’s earnings or leverage change. The agreement also includes an option to expand the facilities materially, which could support larger strategic moves if needed.