BISMARCK, ND – March 10, 2025 – Knife River Corporation (NYSE: KNF) has entered into a First Amendment to its Credit Agreement, securing a total of $1.265 billion in senior secured credit facilities. The amendment, executed on March 7, 2025, with JPMorgan Chase Bank, N.A. as administrative agent, provides enhanced capital flexibility to support Knife River’s strategic growth, including the acquisition of Strata Corporation.
Key Financing Terms:
- $500 million five-year senior secured revolving credit facility.
- $265 million five-year senior secured term loan (Term Loan A Facility).
- $500 million seven-year senior secured term loan (Term Loan B Facility).
- $100 million available for letters of credit under the agreement.
Borrowings under the Revolving Credit Facility and Term Loan A Facility will bear interest at a rate tied to either Term SOFR or an alternate base rate, with the applicable margin determined by Knife River’s consolidated total net leverage ratio. Borrowings under the Term Loan B Facility will carry an annual interest rate of Term SOFR plus 2.00% or an alternate base rate plus 1.00%.
Supporting Growth and Acquisition Strategy
A portion of the proceeds from the Term Loan B Facility was used to fund Knife River’s previously announced acquisition of Strata Corporation, a transaction formalized under an Asset and Equity Purchase Agreement dated December 20, 2024.
Financial and Banking Partners
The First Amendment was arranged with a consortium of leading financial institutions, including:
- JPMorgan Chase Bank, N.A., Bank of America, N.A., MUFG Bank Ltd., Royal Bank of Canada, U.S. Bank National Association, and Wells Fargo Securities, LLC serving as joint lead arrangers and joint bookrunners.
- TD Securities (USA) LLC acting as documentation agent.
- PJT Partners LP advising Knife River Corporation on the transaction.
Positioning for Long-Term Success
By amending its Credit Agreement, Knife River Corporation enhances liquidity, strengthens financial flexibility, and positions itself for continued expansion in the construction materials sector. The updated financing structure reflects confidence in Knife River’s strategic vision and long-term growth trajectory.
