Karmen Holdings amends credit agreement
TL;DR
Karman Holdings amended its credit agreement on February 2, 2026, refinancing $502.8 million in term loans to lower interest rates by 75 basis points and increasing term loan capacity by $265 million to $767.8 million. The proceeds will fund acquisitions, working capital, and expenses, aiming to reduce borrowing costs and improve liquidity.
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Karman Holdings Inc. executed a Third Amendment to its Credit Agreement on February 2, 2026, amending its existing financing terms with Citibank, N.A., as administrative agent, and other lenders. The amendment refinanced $502.8 million in term loans, reducing the interest rate by 75 basis points to SOFR plus 2.75%, and adjusted the revolving credit facility's leverage-based pricing grid by 75 basis points, with the highest tier set at SOFR plus 2.50%. Following the refinancing, the company increased its term loan capacity by $265 million, raising the total principal to $767.8 million.
Proceeds from the additional term loans were allocated to fund a recently completed acquisition, enhance working capital, and cover fees and expenses tied to the amendment. The refinancing is expected to lower borrowing costs and improve liquidity. The Credit Agreement, initially dated April 1, 2025, has been amended three times, with this latest revision reflecting efforts to optimize debt structure amid strategic growth initiatives.
The amendment includes revised repayment terms for the new term loans, including quarterly principal payments of 0.25% of the original principal amount, with full repayment due by the maturity date. Citibank and other lenders participated in the transaction, with the company confirming compliance with all covenants and conditions precedent. This action underscores Karman Holdings' ongoing focus on managing debt obligations while supporting operational expansion.
