M
ME NEWS
18 Jun 2025, 12:48
Donaldson Company Expands and Extends Credit Agreement
Donaldson Company has amended its existing credit agreement to enhance financial flexibility. The Second Amendment, signed on June 12, 2025, extends the maturity date of the company’s $600 million revolving credit facility to June 12, 2030, and increases the total limit from $500 million. It also adds a new $200 million term loan facility maturing in 2028, which was fully drawn at closing.
Proceeds from the term loan were used to partially repay existing revolving borrowings, leaving $60 million outstanding under the revolver. The amendment also raises the incremental credit facility option from $250 million to $350 million, allowing additional borrowing through revolver or term loan expansions.
Interest rates under the new term loan are variable, based on either Adjusted Term SOFR or a Base Rate formula, both subject to a floor and tied to Donaldson’s debt-to-EBITDA ratio. Wells Fargo and U.S. Bank acted as joint lead arrangers and continue to provide banking and financial services to the company.
Donaldson Company has amended its existing credit agreement to enhance financial flexibility. The Second Amendment, signed on June 12, 2025, extends the maturity date of the company’s $600 million revolving credit facility to June 12, 2030, and increases the total limit from $500 million. It also adds a new $200 million term loan facility maturing in 2028, which was fully drawn at closing.
Proceeds from the term loan were used to partially repay existing revolving borrowings, leaving $60 million outstanding under the revolver. The amendment also raises the incremental credit facility option from $250 million to $350 million, allowing additional borrowing through revolver or term loan expansions.
Interest rates under the new term loan are variable, based on either Adjusted Term SOFR or a Base Rate formula, both subject to a floor and tied to Donaldson’s debt-to-EBITDA ratio. Wells Fargo and U.S. Bank acted as joint lead arrangers and continue to provide banking and financial services to the company.