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Get filing alertsStanley Black & Decker secures covenant relief through Q2 2026 on $3B credit facilities
Filed June 24, 2026 · Period ending June 18, 2026 · ~1 min read
Key Changes
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high
Interest coverage ratio requirement reduced from 3.50x to 2.50x through Q2 2026, with up to $250M in EBITDA addbacks permitted during relief period, signaling near-term earnings pressure.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR → -
medium
Amended $2B five-year revolving facility, extending maturity to June 2031 with two one-year extension options; facility was undrawn at closing.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR → -
medium
Entered new $1B 364-day revolving facility maturing June 2027, with option to convert to one-year term loan; facility was undrawn at closing.
Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR → -
low
Terminated prior $1B 364-day credit agreement dated June 2025 in connection with new facility, representing routine annual renewal with same banking syndicate.
Item 1.02 — Termination of a Material Definitive Agreement verify on EDGAR →
Summary
Stanley Black & Decker refinanced its credit facilities on June 18, 2026, securing $3 billion in total revolving capacity through a new $1 billion 364-day facility and an amended $2 billion five-year facility. Both facilities were undrawn at closing.
The most significant aspect is the temporary covenant relief: lenders agreed to reduce the interest coverage ratio requirement from 3.50x to 2.50x through Q2 2026 and permit up to $250 million in EBITDA adjustments during this period. This relief suggests the company is managing near-term profitability challenges and negotiated breathing room to avoid potential covenant violations.
For retail holders, the covenant relief is a yellow flag rather than an immediate crisis—the company maintains substantial undrawn liquidity and lender support, but the relaxed terms acknowledge earnings pressure through mid-2026. The facilities provide financial flexibility while the company works through operational headwinds. Watch for Q2 2026 earnings to assess whether the company returns to normal covenant levels or requires further accommodation.
Section-by-Section Diff
Event · Item 1.02 — Termination of a Material Definitive Agreement
Item 1.02 — Termination of a Material Definitive Agreement filed; see Key Changes for terms.
Show 1 minor / wording change
Added in current filing · verify on EDGAR →
In connection with its entry into the 364-Day Credit Agreement, the Company terminated that certain 364-Day Credit Agreement, dated June 23, 2025 with each of the initial lenders named therein, Citibank, N.A., as administrative agent, Citibank, N.A., BofA Securities, Inc., JPMorgan Chase Bank, N.A., and Wells Fargo Securities, LLC, as lead arrangers and book runners, and Bank of America, N.A., JPMorgan Chase Bank, N.A., and Wells Fargo Bank, National Association, as syndication agents.
The company terminated its existing 364-day credit agreement from June 2025 and simultaneously entered into a new 364-day credit agreement. This represents a routine annual renewal or replacement of short-term credit capacity, maintaining the company's liquidity position with the same banking syndicate.
Event · Item 1.01 — Entry into a Material Definitive Agreement
Stanley Black & Decker entered a $1B 364-day credit facility and amended its $2B five-year facility, both with relaxed covenant relief through Q2 2026.
Added in current filing · verify on EDGAR →
On June 18, 2026, Stanley Black & Decker, Inc., a Connecticut corporation (the “Company”), entered into a 364-Day Credit Agreement (the “364-Day Credit Agreement”) with each of the initial lenders named therein, Citibank, N.A., as administrative agent, Citibank, N.A., BofA Securities, Inc., JPMorgan Chase Bank, N.A., and Wells Fargo Securities, LLC, as lead arrangers and book runners, and Bank of America, N.A., JPMorgan Chase Bank, N.A., and Wells Fargo Bank, National Association, as syndication agents. The 364-Day Credit Agreement consists of a $1.0 billion revolving credit loan
The company established a new $1 billion revolving credit facility maturing June 17, 2027, with an option to convert outstanding balances into a one-year term loan at maturity. The facility was undrawn at closing and provides additional liquidity for general corporate purposes.
Added in current filing · verify on EDGAR →
On June 18, 2026, the Company also entered into an Amended and Restated Five Year Credit Agreement (the “5 Year Credit Agreement”) with each of the initial lenders named therein, Citibank, N.A., as administrative agent, Citibank, N.A., BofA Securities, Inc., JPMorgan Chase Bank, N.A., and Wells Fargo Securities, LLC, as lead arrangers and book runners, and Bank of America, N.A., JPMorgan Chase Bank, N.A., and Wells Fargo Bank, National Association, as syndication agents.
The 5 Year Credit Agreement amends and restates the Amended and Restated Five Year Credit Agreement dated as of June 28, 2024, as amended, among the Company, the lenders named therein and Citibank, N.A., as administrative agent.
The 5 Year Credit Agreement consists of a $2.0 billion revolving credit loan
The company amended and restated its existing five-year credit facility, maintaining the $2 billion size with maturity extended to June 18, 2031 (with two potential one-year extension options). The facility includes an €800 million equivalent swing line sub-limit and was undrawn at closing.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 25, 2026 · How we verify