Flowserve Secures $1.45 Billion Amended & Restated Credit Facility, Extends Maturity to 2031

summarizeSummary

Flowserve secured a new $1.45 billion amended and restated credit agreement, comprising a $1.0 billion revolving facility and a $450 million term loan, extending maturity to 2031 and immediately drawing $700 million for refinancing and general corporate purposes.

check_boxKey Events

• New Credit Facilities Secured

  Flowserve entered into a Third Amended and Restated Credit Agreement for $1.45 billion, consisting of a $1.0 billion unsecured revolving credit facility and a $450.0 million unsecured term loan facility.

• Refinancing and General Corporate Purposes

  On the closing date, $450.0 million was drawn under the term loan and $250.0 million under the revolving credit facility to refinance existing debt and for general corporate purposes.

• Extended Maturity Date

  The new credit facilities have a maturity date of April 15, 2031, providing long-term financial stability.

• Financial Covenants Established

  The agreement includes financial covenants, such as a maximum consolidated net leverage ratio (initially 4.00 to 1.0, then 3.75 to 1.0, with a temporary increase option to 4.25 to 1.0 after material acquisitions) and a minimum consolidated interest coverage ratio of 3.25 to 1.0.

auto_awesomeAnalysis

Flowserve Corporation has entered into a Third Amended and Restated Credit Agreement, securing new credit facilities totaling $1.45 billion. This includes a $1.0 billion unsecured revolving credit facility and a $450.0 million unsecured term loan facility, both maturing on April 15, 2031. The company immediately drew $450.0 million from the term loan and $250.0 million from the revolving credit facility, primarily for refinancing existing debt and general corporate purposes. This significant financing package extends the company's debt maturity profile and provides substantial liquidity and financial flexibility, reinforcing its capital structure. The agreement includes customary financial covenants, such as consolidated net leverage ratios and interest coverage ratios, which the company must maintain.