Applied Industrial Tech amends securitization deal, pushes maturity to 2028

Rhea-AI Filing Summary

Applied Industrial Technologies, Inc. (NYSE: AIT) filed an 8-K on 10 July 2025 to disclose that it amended and extended its accounts-receivable securitization facility.

The facility, arranged with PNC Bank, PNC Capital Markets and a lender group, is now scheduled to mature on 10 July 2028, replacing the prior expiry of 4 Aug 2026. The amendment was executed through (i) Amendment No. 4 to the Receivables Financing Agreement and Performance Guaranty and (ii) Amendment No. 4 to the Purchase and Sale Agreement. AIT Receivables LLC, the Company’s wholly-owned special-purpose subsidiary, remains the borrower; Applied Industrial Technologies continues as servicer.

The filing indicates the borrower paid customary fees; however, no changes to committed size, advance rates, pricing or covenants were disclosed in the text provided. By extending tenor almost two years, AIT secures long-term liquidity while maintaining off-balance-sheet treatment for the transferred receivables. The amendment also triggers 8-K Item 2.03 disclosure because it constitutes the creation (or extension) of a direct financial obligation and an off-balance-sheet arrangement.

The Company attached the full legal agreements as Exhibits 10.1 and 10.2, incorporated by reference. No other business, financial results, or forward-looking statements were included.

Positive

• Maturity extended to 10 July 2028, reducing refinancing risk by almost two years.
• Lender confidence affirmed through fourth amendment without disclosed tightening of terms.
• Liquidity profile strengthened while preserving off-balance-sheet treatment and flexibility.

Negative

• Customary amendment fees incurred, though amounts were not specified.
• Continued reliance on securitization financing introduces structural complexity and potential contingent obligations.

Insights

Financial Analyst

TL;DR – Two-year extension modestly strengthens AIT’s liquidity profile; overall credit impact positive but not transformative.

The securitization programme is a recurring liquidity tool for AIT, supporting working-capital financing at attractive, asset-backed rates. Moving the maturity from 2026 to 2028 reduces near-term refinancing risk and signals continued lender confidence. Because the filing does not mention revised advance rates or commitment size, I assume structural economics remain largely unchanged; therefore, the amendment is incrementally positive rather than a game-changer. Investors should note that off-balance-sheet treatment can mask leverage, but this structure is common in distribution-focused industrials. Impact rating reflects beneficial tenor extension against otherwise stable credit metrics.

Credit Risk Specialist

TL;DR – Extension lowers refinancing risk; covenant package and guaranty reaffirmed, supporting lenders’ collateral position.

From a credit-risk view, extending the receivables facility to 2028 enhances funding certainty across cycles. The reaffirmed performance guaranty preserves lender protections, while continued use of a bankruptcy-remote SPE isolates receivables for investors. Customary fees are minor relative to the benefit of longer tenor. No adverse covenants or incremental liens are disclosed, so balance-sheet flexibility is maintained. I view the amendment as positively impactful for creditors, though equity holders should see limited earnings effect.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

July 10, 2025

Date of Report (date of earliest event reported)

APPLIED INDUSTRIAL TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

Ohio			1-2299						34-0117420
(State or other jurisdiction of incorporation or organization)			(Commission File Number)						(I.R.S. Employer Identification No.)
One Applied Plaza			Cleveland			Ohio			44115
(Address of Principal Executive Offices)									(Zip Code)

(216) 426-4000

Registrant's telephone number, including area code

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock, without par value			AIT			New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

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ITEM 1.01.     Entry into a Material Definitive Agreement.

    On July 10, 2025 Applied Industrial Technologies, Inc. (the “Company”) amended its accounts receivable securitization facility (the “Receivables Facility”), extending its maturity to July 10, 2028. The Receivables Facility had been set to expire on August 4, 2026. The amendment of the Receivables Facility included (a) an Amendment No. 4 to Receivables Financing Agreement and Reaffirmation of Performance Guaranty by and among the Company, as servicer, AIT Receivables LLC (“AIT Receivables”), a wholly-owned special purpose subsidiary of the Company, as borrower, PNC Bank, National Association, as administrative agent, PNC Capital Markets LLC, as structuring agent, and certain additional persons from time to time party thereto, as lenders, and (b) an Amendment No. 4 to Purchase and Sale Agreement by and among AIT Receivables, the Company and certain of its wholly-owned subsidiaries, as originators (together, the “Receivables Facility Amendments”). In connection with this transaction, AIT Receivables paid customary fees to the lenders.

The foregoing description of the Receivables Facility Amendments is qualified in its entirety by reference to the full text of each of the Receivables Facility Amendments, copies of which are respectively attached hereto as Exhibit 10.1 and Exhibit 10.2 and are incorporated herein by reference.

ITEM 2.03.     Creation of a Direct Financial Obligation or an Obligation under an Off-Balance

Sheet Arrangement of a Registrant

The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated by reference in this Item 2.03.

ITEM 9.01     Financial Statements and Exhibits

(d)    Exhibits.

Exhibit No.			Description
10.1			Amendment No. 4 to Receivables Financing Agreement and Reaffirmation of Performance Guaranty dated as of July 10, 2025 among AIT Receivables LLC, as Borrower, PNC Bank, National Association, as administrative agent, Applied Industrial Technologies, Inc., as initial servicer, PNC Capital Markets LLC, as structuring agent, and the additional person from time to time party thereto, as lenders.
10.2			Amendment No. 4 to Purchase and Sale Agreement dated as of July 10, 2025 among various entities listed on Schedule I thereto (including Applied Industrial Technologies, Inc.), as originators, Applied Industrial Technologies, Inc., as servicer, and AIT Receivables LLC, as buyer.
10.4			Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

APPLIED INDUSTRIAL TECHNOLOGIES, INC.

(Registrant)

By: /s/ Jon S. Ploetz

Jon S. Ploetz, Vice President-General Counsel & Secretary

Date: July 11, 2025

FAQ

What did AIT disclose in its 10 July 2025 8-K filing?

AIT reported amending its accounts-receivable securitization facility, extending maturity to 10 July 2028 and reaffirming related guaranties.

How does the amendment affect AIT’s liquidity timeline?

The maturity shift from 4 Aug 2026 to 10 Jul 2028 provides nearly two additional years of committed funding.

Which parties are involved in AIT’s amended receivables facility?

Key parties include PNC Bank (administrative agent), PNC Capital Markets (structuring agent), AIT Receivables LLC (borrower) and Applied Industrial Technologies (servicer).

Were any financial terms such as size or pricing changed?

The 8-K does not disclose adjustments to commitment size, advance rate or pricing—only the tenor extension and payment of customary fees.

Where can investors review the full legal agreements?

Complete texts are filed as Exhibits 10.1 and 10.2 to the 8-K and incorporated by reference.