Simpson Manufacturing Co., Inc. - Form 8-K Filing

Simpson Manufacturing Co., Inc. has entered into a Second Amended and Restated Credit Agreement, effective December 16, 2025. This agreement establishes a 5-year revolving credit facility of $600 million, including a $50 million letter of credit subfacility, and a 5-year term loan facility of $300 million. The revolving credit facility will be used for permitted acquisitions, investments, and general working capital. The term loan facility was utilized to refinance existing debt and cover associated fees and expenses. The company has the option to increase the credit facilities by an amount up to the greater of $525 million or 100% of consolidated EBITDA, subject to certain conditions. The agreement includes annual fees on the revolving credit facility commitments, ranging from 0.10% to 0.25%, based on the company's net leverage ratio. Interest rates on borrowings will vary based on the selected rate (Base Rate, Daily Simple SOFR, Term SOFR, Eurocurrency Rate, or Daily Simple RFR) plus an applicable margin determined by the company's net leverage ratio. The agreement imposes customary affirmative and negative covenants on the company and its subsidiaries, including restrictions on liens, indebtedness, and investments. Financial covenants require the maintenance of a maximum consolidated net leverage ratio of not greater than 3.50:1.00 (with a potential step-up to 4.00:1.00 following certain acquisitions) and a minimum consolidated interest coverage ratio of 2.50:1.00. The agreement also outlines customary events of default, with remedies including the termination of commitments and acceleration of obligations.