Leonardo DRS, Inc. 8-K

What Happened
Leonardo DRS, Inc. announced on January 28, 2026 that it entered into a Credit Agreement establishing a five-year, $500 million senior unsecured revolving credit facility (the Credit Facility) with JPMorgan Chase Bank, N.A. as Administrative Agent and Swing Line Lender and other lenders. The facility is available for borrowings beginning on the closing date and may be used for working capital and general corporate purposes; borrowings may be prepaid at any time without penalty. Certain U.S. direct and indirect subsidiaries (with specified exclusions) provide joint and several guarantees of the Company’s obligations under the Credit Agreement.

Key Details

• Facility size and term: $500 million revolving credit facility, five-year maturity, effective Jan 28, 2026.
• Pricing: initial margins — Term SOFR loans: +1.250%; base rate loans: +0.250% (base is the highest of Fed Funds +0.50%, Prime or 1‑month Term SOFR +1.00%); margins may adjust based on the Company’s leverage.
• Fees and covenants: initial commitment fee 0.150% on unused capacity (range 0.150%–0.300%); customary letter of credit fees. Financial covenants include maximum total net leverage ratio of 3.75x (temporary increase to 4.00x for certain acquisitions) and minimum net interest coverage of 3.00x, measured quarterly.
• Other: facility is senior unsecured; customary events of default and acceleration rights apply; the filing also notes termination of a prior material definitive agreement in connection with this new Credit Agreement and reports the creation of the related financial obligation.

Why It Matters
This new $500 million revolver gives Leonardo DRS additional liquidity and flexibility for working capital and corporate needs while replacing prior financing arrangements. The financial covenants (leverage and interest coverage) and pricing tiers tie borrowing costs and availability to the company’s leverage profile, so investors should watch leverage and coverage metrics going forward. The unsecured nature and subsidiary guarantees affect the company’s overall capital structure and potential recovery in downside scenarios.