Alamo Group enters $602.5M credit agreement

Alamo Group Inc. entered into a Fourth Amended and Restated Credit Agreement providing up to $602,500,000 in borrowing capacity.

Rhea-AI Filing Summary

Alamo Group Inc. entered into a Fourth Amended and Restated Credit Agreement providing up to $602,500,000 in borrowing capacity. The company has a $202,500,000 term loan and access to a $400,000,000 revolving credit facility, both expiring on May 27, 2031.

The term loan requires equal quarterly principal payments of $1,265,625, with remaining principal and interest due at maturity. Borrowings bear interest at base-rate or Term SOFR-based options, plus a margin tied to Alamo’s consolidated net leverage ratio, and the company pays a commitment fee on unused revolver capacity.

Insights

Credit markets and capital structure analyst

Alamo secures a long-dated $602.5M credit facility with flexible borrowing options.

Alamo Group has put in place a Fourth Amended and Restated Credit Agreement totaling up to $602,500,000, split between a $202,500,000 term loan and a $400,000,000 revolving facility that runs through May 27, 2031. This creates a sizeable, committed lending base with a clearly defined maturity.

Interest is based on base-rate or Term SOFR benchmarks, plus margins ranging from 1.25% to 2.25% for SOFR and alternative currency borrowings and 0.25% to 1.25% for base-rate loans, all tied to the consolidated net leverage ratio. A commitment fee between 0.125% and 0.30% applies to undrawn revolver amounts.

The facility includes leverage and fixed charge coverage covenants, plus limits on additional debt, investments, asset sales and liens. Actual impact will depend on how much of the revolver Alamo draws and its ability to keep leverage and coverage within required thresholds over the agreement’s life.

8-K Event Classification

3 items: 1.01, 2.03, 9.01

3 items

Item 1.01 Entry into a Material Definitive Agreement Business

The company signed a significant contract such as a merger agreement, credit facility, or major partnership.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement Financial

The company incurred a new significant debt or off-balance-sheet obligation.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Total credit capacity: $602,500,000 Term loan amount: $202,500,000 Revolver capacity: $400,000,000 +5 more

8 metrics

Total credit capacity $602,500,000 Aggregate amount available under 2026 Credit Agreement

Term loan amount $202,500,000 Borrowed under term facility

Revolver capacity $400,000,000 Maximum available under revolving facility

Quarterly principal payment $1,265,625 Equal quarterly principal on term loan

SOFR/alt currency margin 1.25%–2.25% Applicable margin over Term SOFR or alternative benchmarks

Base-rate margin 0.25%–1.25% Applicable margin for base-rate borrowings

Commitment fee on revolver 0.125%–0.30% Fee on unused portion of $400M revolver

Facility maturity date May 27, 2031 Expiration of term and revolving facilities

Key Terms

Term SOFR, consolidated net leverage ratio, consolidated fixed charge coverage ratio, commitment fee, +1 more

5 terms

Term SOFR financial

"a rate applicable to Term Secured Overnight Financing Rate (“Term SOFR”) loans"

Term SOFR is a benchmark interest rate that reflects the cost of borrowing money over a specific period, based on actual transactions in the financial markets. It is used by lenders and borrowers to set the interest rates on loans and financial contracts, helping to ensure rates are fair and transparent. For investors, understanding term SOFR helps gauge borrowing costs and the overall direction of interest rates in the economy.

consolidated net leverage ratio financial

"with the margin percentage based upon the Company's consolidated net leverage ratio"

The consolidated net leverage ratio measures how much debt a company carries compared with the cash it generates from core operations, calculated by taking total borrowings minus cash and dividing by annual operating profit. Like comparing a household’s mortgage balance to its yearly income, it tells investors how many years of operating profit would be needed to pay off net debt and thus gauges financial risk, flexibility to invest, and capacity to weather downturns.

consolidated fixed charge coverage ratio financial

"a maximum consolidated net leverage ratio and a minimum consolidated fixed charge coverage ratio"

commitment fee financial

"The Company must also pay a commitment fee to the lenders"

A commitment fee is a charge a lender applies to a borrower for keeping a loan or line of credit available, even before any money is drawn. Think of it as a reservation fee for borrowing power; the borrower pays to ensure funds will be there when needed. Investors care because it adds to a company’s borrowing cost, affects cash flow and liquidity, and can signal lenders’ willingness to extend credit.

events of defaults financial

"The Agreement also contains other customary covenants, representations and events of defaults"

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What new credit facility did Alamo Group (ALG) enter into?

Alamo Group entered a Fourth Amended and Restated Credit Agreement providing up to $602,500,000 in borrowing capacity. It includes a $202,500,000 term loan and a $400,000,000 revolving facility, both expiring May 27, 2031, with financial covenants and customary restrictions.

How is Alamo Group’s (ALG) $602.5 million credit agreement structured?

The agreement provides a $202,500,000 term loan and a $400,000,000 revolving credit facility. The term loan amortizes through equal quarterly principal payments, while the revolver can be drawn and repaid as needed until its May 27, 2031 expiration date.

What interest rates apply under Alamo Group’s (ALG) 2026 Credit Agreement?

Borrowings in U.S. dollars can use a base rate or Term SOFR for 1, 3, or 6 months. Margins range from 1.25% to 2.25% for SOFR and alternative currencies, and 0.25% to 1.25% for base-rate loans, depending on the consolidated net leverage ratio.

What fees does Alamo Group (ALG) pay on its revolving credit facility?

Alamo Group must pay a commitment fee between 0.125% and 0.30% on any unused portion of the $400,000,000 revolver. This fee compensates lenders for keeping undrawn capacity available over the life of the facility through May 27, 2031.

What financial covenants are in Alamo Group’s (ALG) 2026 Credit Agreement?

The agreement requires Alamo Group to maintain a maximum consolidated net leverage ratio and a minimum consolidated fixed charge coverage ratio. It also includes limitations on additional indebtedness, investments, acquisitions, property sales, and liens, along with other customary covenants and events of default.

When does Alamo Group’s (ALG) new credit agreement expire?

The expiration date for both the term loan and the revolving credit facility is May 27, 2031. At that time, any remaining term loan principal plus interest is due, and revolving commitments terminate under the terms of the Fourth Amended and Restated Credit Agreement.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 05/27/2026 - 05:47 PM Learn about SEC filing dates

FALSE000089707700008970772026-05-272026-05-27

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

Date of Report (Date of earliest event reported): May 27, 2026

Alamo Group Inc.

(Exact name of registrant as specified in its charter)

 

State of Delaware			0-21220			74-1621248
(State or other jurisdiction of incorporation)			(Commission File No.)			(IRS Employer Identification No.)

  

1627 E. Walnut, Seguin, Texas						78155
(Address of Registrant’s principal executive offices)						(Zip Code)

			(830) 379-1480
Registrant's telephone number, including area code:
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, par value $.10 per share			ALG			New York Stock Exchange

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:

☐ 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))

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. ☐ 

Item 1.01 Entry into a Material Definitive Agreement.

Fourth Amended and Restated Credit Agreement

On May 27, 2026, Alamo Group Inc. (the “Company”), as the borrower, and each of its domestic subsidiaries as guarantors, entered into a Fourth Amended and Restated Credit Agreement (the “2026 Credit Agreement”) with Bank of America, N.A., as Administrative Agent. The 2026 Credit Agreement provides the Company with the ability to request loans and other financial obligations in an aggregate amount of up to $602,500,000. Under the 2026 Credit Agreement, the Company has borrowed $202,500,000 pursuant to a term facility, while up to $400,000,000 is available to the Company pursuant to a revolving facility which terminates in five years. The term facility requires the Company to make equal quarterly principal payments of $1,265,625 over the term of the loan, with the final payment of any outstanding principal amount, plus interest, due at the end of the five year term.

Borrowings under the 2026 Credit Agreement bear interest at the Company’s option as follows: (i) in the case of borrowings denominated in U.S. dollars, at (a) a base rate (defined as the highest of the Bank of America prime rate, the federal funds rate plus 0.50%, and a rate applicable to Term Secured Overnight Financing Rate (“Term SOFR”) loans with a one-month interest period) or (b) a Term SOFR rate (for a 1, 3 or 6 month interest period, as elected by the Company) and (ii) in the case of borrowings denominated in an alternative currency, at the applicable variable benchmark rate for such alternative currency (determined on a daily basis or on the basis of a 1, 3 or 6 month interest period, as elected by the Company), plus, in each case, an applicable margin. The applicable margin ranges from 1.25% to 2.25% for Term SOFR, alternative currency, and letter of credit borrowings and from .25% to 1.25% for base rate borrowings with the margin percentage based upon the Company's consolidated net leverage ratio. The Company must also pay a commitment fee to the lenders ranging between 0.125% to 0.30% on any unused portion of the $400,000,000 revolving facility.

The 2026 Credit Agreement requires the Company to maintain two financial covenants, namely, a maximum consolidated net leverage ratio and a minimum consolidated fixed charge coverage ratio. The Agreement also contains various covenants relating to limitations on indebtedness, limitations on investments and acquisitions, limitations on the sale of properties and limitations on liens. The Agreement also contains other customary covenants, representations and events of defaults.

The expiration date of the 2026 Credit Agreement, including the term facility and the revolving facility, is May 27, 2031.

The above description is qualified in its entirety by reference to the Credit Agreement, which is filed herewith as Exhibit 10.1 and is 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 provided in Item 1.01 of this report is incorporated herein by reference.

Item 9.01    Financial Statements and Exhibits

Exhibit 10.1 – Fourth Amended and Restated Credit Agreement

Exhibit 104 – Cover Page Interactive Data File - Inline XBRL for the cover page of this Current Report on Form 8-K

SIGNATURES

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 hereunto duly authorized.

 

May 27, 2026			By:  /s/ Edward T. Rizzuti
			Edward T. Rizzuti,
			EVP Corporate Development, Investor Relations & Secretary

Filing Exhibits & Attachments

4 documents

Agreements & Contracts

• EX-10.1 EX-10.1 1.7 MB

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT 1.7 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT 21.4 KB
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT 12.2 KB