European Investor
01 Jul 2025, 09:51
IPG Photonics Secures New $200 Million Credit Facility with Bank of America
IPG Photonics Corporation has entered into a new $200 million unsecured revolving credit agreement with Bank of America, replacing its previous facility set to expire June 30. The new agreement, effective June 24, 2025, matures in 2030 and includes a $25 million sub-limit for letters of credit, with an option to increase the total commitment by $100 million under certain conditions.
The funds may be used for working capital, capital expenditures, and general corporate needs. Borrowings will carry variable interest based on Term SOFR or a base rate, depending on the company’s leverage ratio. There are no prepayment penalties.
The credit agreement includes standard financial covenants, such as maintaining a consolidated net leverage ratio of 3.00 to 1.00, and customary default provisions.
IPG Photonics Corporation has entered into a new $200 million unsecured revolving credit agreement with Bank of America, replacing its previous facility set to expire June 30. The new agreement, effective June 24, 2025, matures in 2030 and includes a $25 million sub-limit for letters of credit, with an option to increase the total commitment by $100 million under certain conditions.
The funds may be used for working capital, capital expenditures, and general corporate needs. Borrowings will carry variable interest based on Term SOFR or a base rate, depending on the company’s leverage ratio. There are no prepayment penalties.
The credit agreement includes standard financial covenants, such as maintaining a consolidated net leverage ratio of 3.00 to 1.00, and customary default provisions.
