Manufacturer Leggett & Platt entered into an amended agreement for its existing revolving credit facility to provide additional borrowing capacity and financial flexibility. According to an 8K filed with the SEC, JPMorgan Chase is the administrative agent for the agreement.
Pursuant to the terms of the amended agreement, the company has increased the leverage ratio under the financial covenant from 3.5x to 4x trailing 12-months adjusted EBITDA through June 30, 2025. The leverage ratio will revert to 3.5x as of Sept. 30, 2025, and remain at 3.5x until the facility’s maturity date on Sept. 30, 2026.
“The amended credit agreement reflects our commitment to maintaining our long-held financial strength,” Mitch Dolloff, president and CEO of Leggett & Platt, said. “We are confident that the amended agreement will provide us with ample liquidity and flexibility as we manage near-term weak demand in residential end markets.
“As a board and management team, we are carefully evaluating our capital allocation priorities, including the amount of cash allocated to our dividend program, to ensure that we maintain a strong and stable financial position as we execute our operating initiatives and drive the long-term success of Leggett.”
