Enerpac Tool Group Corp. entered into an Amended and Restated Credit Agreement on October 16, 2026, replacing its existing facility with a larger, longer-term structure. The move establishes a new borrowing framework for the Milwaukee-based company, extending its maturity horizon to 2031.
Under the new agreement, PNC Bank, National Association, serves as the administrative agent. The facility consists of a $550 million revolving credit facility and a $300 million term loan. The revolving credit facility allows up to $200 million in borrowings to be denominated in Euros, Pounds Sterling, or other mutually acceptable foreign currencies. This structure replaces the previous Credit Agreement dated September 9, 2022, which provided for a $625 million revolving credit facility and a $200 million term loan scheduled to mature on September 9, 2027.
The company retains the option to request increases in loan facilities or enter into additional term loan tranches, up to an aggregate amount of $425 million, subject to customary conditions and lender commitments. All borrowings under the new Credit Agreement will mature on October 16, 2031. The debt is secured by substantially all personal property assets of Enerpac Tool Group Corp. and its domestic subsidiary guarantors, excluding certain specified assets, as well as specific equity interests of certain subsidiaries.
Interest rates on borrowings initially bear term SOFR plus 1.125% per annum. These spreads are subject to adjustment based on the company's net leverage ratio, ranging from 1.125% to 1.875% per annum for term SOFR loans and from 0.125% to 0.875% per annum for base rate loans. A quarterly non-use fee applies to the average daily unused portion of the revolving credit facility, ranging from 0.150% to 0.275% per annum based on net leverage.
The agreement imposes financial covenants requiring the company to maintain a net leverage ratio not exceeding 3.75 to 1.00 at the end of each fiscal quarter. This limit can rise to 4.25 to 1.00 during the testing period of certain material acquisitions and the next four testing periods, subject to company election and conditions. Additionally, the interest coverage ratio must not fall below 3.00 to 1.00.
Repayment of the $300 million term loan begins in principal installments of $0.9375 million per quarter starting March 1, 2028. Installments increase to $1.875 million per quarter beginning March 1, 2029, and further to $3.750 million per quarter beginning March 1, 2030, with the remaining balance due at maturity.
Initial borrowings under the new Credit Agreement were applied to repay outstanding indebtedness under the Existing Credit Agreement and to fund applicable fees and transaction expenses. The agreement includes customary restrictions on investments, asset dispositions, indebtedness, liens, and dividends. Noah Popp, Executive Vice President, General Counsel and Secretary of Enerpac Tool Group Corp., signed the Form 8-K filing on October 19, 2026.