Allient, a global designer and manufacturer of precision and specialty motion, controls and power products and solutions for targeted industries and applications, amended its 2024 credit facilities to enhance flexibility in financial planning through FY/25. Additionally, the company has executed a new interest rate swap agreement.

“We appreciate the ongoing support from our lending partners, which has provided us with increased flexibility to execute our strategic priorities,” Jim Michaud, chief financial officer of Allient, said. “These amendments, along with the new interest rate swap, enhance our ability to optimize the business with our Simplify to Accelerate NOW strategy while maintaining strong financial discipline and effectively managing interest rate risk.”

The amendment maintains the leverage ratio covenant at 4.25:1 for the trailing 12-month (TTM) periods ending Sept. 30, 2024 and Dec. 31, 2024, before increasing to 4.5:1 for the TTM periods ending March 31, 2025 and June 30, 2025. It then reduces to 4.0:1 for the period ending Sept. 30, 2025 and then reverts to 3.75:1 for the remainder of the agreement. Additionally, the amendment allows up to $4 million in acquisition, business retention, restructuring, integration and realignment costs to be included in the EBITDA calculation during any TTM period.

Allient executed a new interest rate swap agreement effective Sept. 30, 2024. The agreement hedges $50 million of debt over a three-year term, protecting the company from potential interest rate volatility and aligning with its financial strategy to mitigate risks tied to fluctuating SOFR-based rates.