Badger Meter (NYSE: BMI) extends $150M revolving credit facility to 2031
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Badger Meter, Inc. entered into an amended and extended $150 million multi-currency revolving credit facility, moving the maturity to July 8, 2031. As of the amendment date, there were no borrowings outstanding under this facility.
Borrowings will bear interest at benchmark rates such as the Term SOFR Rate, Adjusted EURIBO Rate or Daily Simple SONIA, plus 87.5 basis points. The agreement includes financial covenants, including a maximum Consolidated Net Debt to EBITDA Ratio of 3.00 to 1.00, with flexibility to increase this limit to 3.50 to 1.00 for certain material acquisitions.
Positive
- None.
Negative
- None.
8-K Event Classification
4 items: 1.01, 1.02, 2.03, 9.01
4 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 1.02
Termination of a Material Definitive Agreement
Business
A significant contract was terminated, which may affect business operations or revenue.
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, and exhibit attachments filed with this report.
Key Figures
Revolving credit facility size: $150 million
Facility maturity date: July 8, 2031
Initial interest margin: 87.5 basis points
+3 more
6 metrics
Revolving credit facility size
$150 million
Amended multi-currency revolving credit facility
Facility maturity date
July 8, 2031
Extended maturity of amended facility
Initial interest margin
87.5 basis points
Spread over benchmark rates for borrowings
Max Net Debt to EBITDA
3.00 to 1.00
Standard leverage covenant under the facility
Step-up Net Debt to EBITDA
3.50 to 1.00
Temporary limit for certain material acquisitions
Minimum interest coverage ratio
3.00 to 1.00
EBIT to cash interest expense covenant
Key Terms
multi-currency revolving credit facility, Consolidated Net Debt to EBITDA Ratio, Term SOFR Rate, Adjusted EURIBO Rate, +2 more
6 terms
multi-currency revolving credit facility financial
"amended and extended its $150 million multi-currency revolving credit facility, with an extended maturity date"
Consolidated Net Debt to EBITDA Ratio financial
"based on the Company’s then-current ratio of consolidated debt net of certain cash adjustments to earnings before interest"
Term SOFR Rate financial
"The interest rate on borrowings under the Amended Facility will initially be the Term SOFR Rate"
Term SOFR rate is a forward-looking interest rate for a set period (for example one or three months) based on the overnight cost of borrowing cash using Treasury securities as collateral. Think of it as a quoted, agreed-upon lending rate for a future interval, like locking in the expected short-term borrowing cost ahead of time. Investors care because it is used to price loans, bonds and derivatives as a transparent replacement for older benchmarks, affecting interest payments and valuation.
Adjusted EURIBO Rate financial
"initially be the Term SOFR Rate, the Adjusted EURIBO Rate or Daily Simple SONIA"
Daily Simple SONIA financial
"the Term SOFR Rate, the Adjusted EURIBO Rate or Daily Simple SONIA, as the case may be"
Daily simple SONIA is a widely used benchmark interest rate that reflects the actual overnight cost of borrowing British pounds, expressed as a straightforward daily rate without compounding. Investors use it to calculate interest payments, price loans, bonds and derivatives in a way similar to using a daily electricity meter reading to set your bill; small day-to-day changes can alter cash flows, valuations and hedging costs for financial contracts tied to it.
cash interest expense financial
"a ratio not less than 3.00 to 1.00 of earnings before interest and taxes and certain other adjustments to cash interest expense"
FAQ
What did Badger Meter (BMI) announce regarding its credit facility?
Badger Meter amended and extended its $150 million multi-currency revolving credit facility to mature on July 8, 2031. This facility provides committed borrowing capacity in multiple currencies, supporting liquidity and potential future financing needs without current outstanding borrowings.
How large is Badger Meter’s amended revolving credit facility?
The amended facility has a total capacity of $150 million. It is structured as a multi-currency revolving credit facility, allowing Badger Meter to borrow in U.S. dollars, euros and pounds sterling under a single agreement with consistent covenant requirements.
What interest rates apply under Badger Meter’s amended credit facility?
Borrowings will accrue interest at the Term SOFR Rate, Adjusted EURIBO Rate or Daily Simple SONIA, depending on currency, plus 87.5 basis points. This spread is tied to Badger Meter’s Consolidated Net Debt to EBITDA Ratio, which can affect pricing over time.
What key financial covenants are included in Badger Meter’s amended facility?
Key covenants include a maximum Consolidated Net Debt to EBITDA Ratio of 3.00 to 1.00 and an interest coverage ratio of at least 3.00 to 1.00. These covenants help ensure Badger Meter maintains moderate leverage and adequate ability to service interest obligations.
Can Badger Meter increase its leverage limit under the new agreement?
Yes. Badger Meter may elect to increase the maximum Consolidated Net Debt to EBITDA Ratio to 3.50 to 1.00 for four consecutive fiscal quarters. This option is available up to two times in any five-year period when tied to certain material acquisitions.
Does Badger Meter currently have any borrowings under the amended facility?
No. As of the amendment date, Badger Meter had no amounts outstanding under the revolving credit facility. The agreement provides committed borrowing capacity that can be drawn in the future as needed, rather than reflecting existing debt usage.