Atmus Filtration Technologies Inc. 8-K

What Happened
On January 7, 2026, Atmus Filtration Technologies Inc. filed an 8‑K disclosing an Amended and Restated Credit Agreement with Bank of America, N.A. as administrative agent. The new facilities replace the prior credit agreement and provide a $1.0 billion term loan and a $500 million revolving credit facility (total capacity $1.5 billion), both maturing January 7, 2031. The term loan was fully drawn at the close to refinance existing indebtedness, fund part of the previously announced acquisition of Koch Filter Corporation and pay related fees and expenses. The company also issued a press release on the closing of the Koch Filter acquisition.

Key Details

• Closing date: January 7, 2026; administrative agent: Bank of America, N.A.
• Facilities: $1.0B term loan (fully drawn) and $500M revolver; maturity January 7, 2031.
• Revolver sublimits: $50M for letters of credit, $200M for certain foreign-currency loans/LCs, $50M swingline.
• Interest: U.S. dollar loans at Alternate Base Rate + 0.125–0.75% or SOFR + 1.125–1.750%, margins depend on Total Net Leverage Ratio; unused revolver fee 0.175–0.25% p.a.
• Amortization: quarterly payments starting in the fifth full fiscal quarter (2.5% annual of original term amount, rising to 5.0% after the ninth full quarter); balance due at maturity.
• Covenants: Total Leverage Ratio ≤ 4.00:1 (can be 4.50:1 for certain qualified acquisitions) and Interest Coverage Ratio ≥ 3.00:1 (measured on a rolling four-quarter basis).
• Guarantees/collateral: substantially unchanged; Koch Filter joined as a guarantor; guarantees/security automatically release if the Parent achieves specified investment‑grade ratings.

Why It Matters
This filing confirms Atmus has secured larger, longer-dated financing ($1.5B total facilities) to refinance prior debt and support the Koch Filter acquisition, improving liquidity and extending maturities to 2031. Investors should note the financial covenants (leverage and interest coverage) and the interest‑rate mechanics tied to the company’s leverage profile—both will affect borrowing costs and operational flexibility. The addition of Koch Filter as a guarantor and the maintenance of customary collateral and prepayment provisions are important for creditor protections and could affect the company’s capital structure going forward.