Pentair Secures $1.4B Term Loan Financing for Taco Acquisition
PNR is trading near its 52-week low of $57.6 (3.9% above the low).
Summary
Pentair entered into a $1.4 billion credit agreement on September 1, 2026 to finance its pending Taco Group Holdings acquisition, with a $400M tranche maturing 18 months after closing and a $1.0B tranche maturing May 2030.
Key Events · Financing and Capital Events · PNR
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$1.4B Term Loan Facilities Secured
Pentair Finance S.à r.l. entered into a Credit Agreement providing a $400M Tranche 1 term loan facility and a $1.0B Tranche 2 term loan facility to finance the Taco Acquisition, pay related fees, and refinance certain Taco indebtedness.
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Financing Structure and Maturities
Tranche 1 matures 18 months after the Taco Acquisition closing date; Tranche 2 matures May 5, 2030. No loans were outstanding as of September 1, 2026, and funding is contingent on the Taco Acquisition closing substantially concurrently.
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Financial Covenants
The agreement requires a maximum net leverage ratio of 3.75x (with a one-time election to 4.25x for four testing periods after material acquisitions) and a minimum interest coverage ratio of 3.00x.
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Ticking Fee on Undrawn Commitments
Beginning November 24, 2026, Pentair Finance will pay a 0.125% per annum ticking fee on daily undrawn term loan commitments until the facilities are funded, terminated, or expire.
Analysis · PNR · Technology
Pentair has locked in $1.4 billion in senior unsecured term loan commitments to fund its $1.425 billion acquisition of Taco Group Holdings. The financing removes uncertainty around how the deal will be funded, but adds significant leverage to a company already facing a 17% sales decline and a CFO departure. The covenants cap net leverage at 3.75x (with a temporary 4.25x election for material acquisitions) and require interest coverage of at least 3.0x, giving lenders meaningful protection while constraining Pentair's future financial flexibility.
How filings like this one have moved
In the 30 days to Sep 11, 2026, 30.2% of the 1961 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.20%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, PNR was trading at $59.84 on NYSE in the Technology sector, with a market capitalization of approximately $9.6B. The 52-week trading range was $57.60 to $113.95. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.