Amentum Holdings, Inc. 8-K

What Happened

• On April 24, 2026 (filed April 28, 2026), Amentum Holdings, Inc. announced a First Amendment to its Existing Credit Agreement that replaces prior facilities with new term and revolving facilities. The amendment establishes a $1.400 billion five-year senior secured Term Loan A, a $1.591 billion senior secured Term Loan B, and a $1.000 billion five-year senior secured revolving credit facility. Amentum Services, Inc. and Amentum Technology, Inc. are co-borrowers on the term loans.
• Amentum used proceeds from the term loans and cash on hand to repay in full outstanding borrowings under the prior credit agreement and to pay related fees and expenses. The revolver is available for general corporate purposes and borrowings in multiple currencies.

Key Details

• Loan amounts & maturities: Term Loan A $1.400B (matures April 24, 2031); Term Loan B $1.591B (matures Sept 27, 2031); Revolver $1.0B (matures April 24, 2031).
• Amortization: Term A amortizes quarterly — 2.50% annually from 9/30/26–6/30/28, 5.00% annually from 9/30/28–6/30/30, then 7.50% thereafter; Term B amortizes 1.00% annually in equal quarterly installments.
• Pricing: Term A interest = Alternate Base Rate + 0.25%–1.00% or Term SOFR + 1.25%–2.00% (tiered by first‑lien leverage); Term B = Alternate Base Rate + 0.75% or Term SOFR + 1.75%; Revolver margins vary by rate type and leverage (similar ranges to Term A).
• Covenants & security: Term B has no financial maintenance covenants; Term A and the revolver include a first‑lien net leverage maintenance covenant (maximum 4.50x, stepping to 5.00x for four quarters after certain qualified acquisitions). Obligations are senior‑guaranteed and secured by first‑priority liens on substantially all material domestic assets (subject to customary exceptions).

Why It Matters

• This amendment refinances and extends Amentum’s credit facilities, pushing principal maturities into 2031 and providing a $1.0B revolver for liquidity and working capital needs. That can reduce near‑term refinancing risk and support operations or transactions.
• Key covenant structure — no maintenance covenant on Term B but a leverage test on Term A and the revolver — creates a mix of flexibility and typical lender protections; investors should note the 4.50x first‑lien net leverage cap (temporary step‑up to 5.00x in limited cases) as a metric that may constrain distributions or new leverage if breached.
• Loans are senior and secured, meaning lenders have priority claims on substantially all material domestic assets, which is relevant for capital structure and creditor priority.