Ferguson Secures $1.6B in Bridge and Term Loan Commitments to Fund FloWorks Acquisition

summarizeSummary

Ferguson locked in $1.6 billion in committed bank financing — a $700M bridge and a $900M term loan — to fund its acquisition of FloWorks, with pricing tied to its investment-grade credit ratings.

check_boxKey Events · Financing and Capital Events · FERG

• $1.6B Financing Package Secured

  Ferguson entered into a $700 million bridge credit agreement and a $900 million term loan credit agreement, both unsecured, to fund the FloWorks acquisition.

• Pricing Tied to Credit Ratings

  Interest margins range from 0.75% to 1.25% over SOFR depending on Ferguson's senior unsecured debt ratings, with commitment fees of 0.07% to 0.125%.

• Leverage Covenant Set

  The agreements require a maximum consolidated net leverage ratio of 3.50x, with a temporary step-up to 4.00x for four quarters after material acquisitions.

• Funding Contingent on Acquisition Close

  Drawings are available only upon consummation of the FloWorks acquisition, with the bridge facility available until October 8, 2026 (extendable to November 7, 2026).

auto_awesomeAnalysis · FERG · Trade & Services

Ferguson entered into a $700 million bridge credit agreement and a $900 million term loan credit agreement with JPMorgan as administrative agent. The bridge facility matures 364 days after funding and the term loan matures three years after funding. Both are unsecured and bear interest at SOFR plus a margin of 0.75% to 1.25% based on credit ratings. The agreements include a maximum net leverage ratio covenant of 3.50x, stepping up to 4.00x for four quarters after material acquisitions. This financing package provides the debt capital to complete the $1.6 billion FloWorks acquisition announced last month, replacing the need for a larger bridge facility and demonstrating strong bank support.