Franklin Electric Co., Inc. (NASDAQ:FELE) has finalized an amendment to its credit agreement, extending the maturity date to May 14, 2030, while maintaining its revolving commitment at $350 million, according to an 8-K filing with the Securities and Exchange Commission. The Fifth Amended and Restated Credit Agreement involves Franklin Electric, its subsidiary Franklin Electric B.V., JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A., as Syndication Agent, and other identified lenders.
The agreement includes an option to increase the revolving commitments by up to an additional $175 million, potentially reaching a total commitment of $525 million, subject to certain conditions. This move aligns with the company’s prudent financial management, as evidenced by its moderate debt-to-equity ratio of 0.17 and strong current ratio of 1.98.
The facility carries a commitment fee ranging from 0.100% to 0.250%, contingent upon the company’s leverage ratio. Financial covenants require a maximum leverage ratio of 3.50 to 1.00 and an interest coverage ratio of at least 3.00 to 1.00, along with a priority debt cap at 20% of total tangible assets.
In its recent first-quarter 2025 earnings report, Franklin Electric posted an EPS of $0.67, missing forecasts of $0.76, while revenue came in at $455.2 million, below the expected $472.1 million. Despite these shortfalls, the company maintains its full-year sales guidance between $2.090 billion and $2.150 billion.
For the complete details about Franklin Electric’s extended credit facility, visit the SEC filing page.
