Booz Allen expands revolver to $1.5B, adds new term loan
Booz Allen Hamilton Holding Corporation amended its long-term credit agreement on February 27, 2026.
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Rhea-AI Filing Summary
Booz Allen Hamilton Holding Corporation amended its long-term credit agreement on February 27, 2026. The company replaced its existing $1.0 billion revolving credit commitments with new commitments and increased them by $500 million, creating a single $1.5 billion revolving credit facility maturing on February 27, 2031 for general corporate uses, including working capital.
The company also arranged a new Tranche A-2 term loan maturing on February 27, 2031, borrowing $750 million and using those proceeds to repay $750 million of existing Tranche A term loans, of which about $1.464 billion was outstanding before the change. The amendment further relaxes certain negative covenants, allowing more debt, related liens, and greater flexibility for dividends, share repurchases, and other distributions when specified financial conditions are met and no default is continuing.
Insights
Booz Allen upsizes and extends its bank facilities while easing some covenants.
Booz Allen expanded its revolving credit capacity from $1.0 billion to $1.5 billion, with both the revolver and new Tranche A-2 term loan now maturing on February 27, 2031. This consolidates liquidity around a longer-dated bank debt structure.
The company raised $750 million under the new Tranche A-2 term loan and immediately used it to repay an equal amount of existing Tranche A term loans. That keeps gross borrowing from this step broadly stable while refreshing loan terms and maturity for part of the term debt.
The amendment also relaxes certain negative covenants, increasing baskets for additional indebtedness and liens and expanding capacity for dividends, equity repurchases, and other distributions, subject to financial covenant compliance and absence of default. Actual impact will depend on how actively the company taps this added flexibility in future periods.
8-K Event Classification
FAQ
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What did Booz Allen Hamilton (BAH) change in its credit agreement?
How large is Booz Allen Hamilton’s new revolving credit facility?
What is the purpose of Booz Allen Hamilton’s new Tranche A-2 term loan?
Did Booz Allen Hamilton extend the maturity of its credit facilities?
How does the amended credit agreement affect Booz Allen Hamilton’s covenants?
How were existing Tranche A term loans affected by the Booz Allen amendment?
AI-generated analysis. How Rhea-AI works. Not financial advice.