Cintas (NASDAQ: CTAS) adds $2.0B revolver with leverage covenant to 2031

Rhea-AI Filing Summary

Cintas Corporation, through its wholly owned subsidiary Cintas Corporation No. 2, entered into a new $2.0 billion revolving credit facility with a maturity date of March 27, 2031. The facility includes a $300.0 million letter of credit sub-facility and a $150.0 million swing line sub-facility.

The agreement allows additional revolving commitments or new term loans of up to $1.0 billion in total and is guaranteed by the parent company and key domestic subsidiaries. It carries interest based on Term SOFR plus 70–114 basis points or a Base Rate, and requires Cintas to keep its leverage ratio at or below 3.50 to 1.00, temporarily rising to 4.00 to 1.00 for four quarters after certain material acquisitions. In connection with this new facility, Cintas terminated and fully repaid all obligations under its prior credit agreement.

Insights

Corporate credit and capital structure analyst

Cintas refinances and extends a large credit facility to 2031 with covenant discipline.

Cintas has put in place a $2.0 billion revolving credit facility maturing on March 27, 2031, with additional accordion capacity of up to $1.0 billion. This provides sizable committed liquidity and extends the company’s debt maturity profile.

The leverage covenant caps consolidated indebtedness to consolidated EBITDA at 3.50 to 1.00, rising to 4.00 to 1.00 for four quarters around qualifying acquisitions. That framework encourages moderate leverage while preserving flexibility for larger deals. The simultaneous termination and repayment of the existing 2022 credit agreement indicates this is primarily a refinancing and upsizing move rather than incremental short-term stress funding.

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: $2.0 billion Letter of credit sub-facility: $300.0 million Swing line sub-facility: $150.0 million +5 more

8 metrics

Revolving Credit Facility size $2.0 billion Total commitments under new revolving credit facility

Letter of credit sub-facility $300.0 million Maximum standby letter of credit capacity within facility

Swing line sub-facility $150.0 million Maximum swing loan capacity within facility

Accordion feature $1.0 billion Potential increase in revolving or new term loan commitments

Facility maturity March 27, 2031 Final maturity date of revolving credit facility

Leverage covenant 3.50 to 1.00 Maximum consolidated indebtedness to EBITDA ratio, standard

Acquisition leverage step-up 4.00 to 1.00 Temporary maximum leverage for four quarters after material acquisitions

Swing loan maturity 15 days Maximum time from funding for each swing loan, or earlier facility maturity

Key Terms

Revolving Credit Facility, swing line sub-facility, Term SOFR, Base Rate, +2 more

6 terms

Revolving Credit Facility financial

"entered into a $2.0 billion revolving credit facility (the “Revolving Credit Facility”)"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

swing line sub-facility financial

"a swing line sub-facility of up to $150.0 million"

Term SOFR financial

"either (i) the relevant Term SOFR rate for the selected interest rate period"

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.

Base Rate financial

"or (ii) the Base Rate"

The base rate is the primary interest rate set by a central authority or used as a benchmark for pricing loans, savings and other financial products. Think of it as the anchor in a floating system: when the base rate moves, borrowing costs, corporate financing and consumer spending tend to shift too, which can change company profits and investor returns across the market.

leverage ratio financial

"requires the Corporation to maintain a leverage ratio of consolidated indebtedness to consolidated EBITDA"

Leverage ratio measures how much a company relies on borrowed money compared with its own funds or assets, typically expressed as debt relative to equity or total assets. Like a homeowner with a mortgage, higher leverage can amplify returns when business is strong but also raises the chance of big losses or default if revenue falls, so investors use it to judge financial risk and resilience.

event of default financial

"The Credit Agreement contains customary events of default"

An event of default is a specific breach of a loan or bond agreement—such as missed payments or breaking agreed rules—that gives lenders the legal right to act, for example by demanding immediate repayment, seizing collateral, or accelerating other obligations. For investors, it’s a red flag because it can sharply reduce a company’s ability to operate or raise money, like a car lender repossessing a vehicle after missed payments, and often leads to falling share or bond prices.

Understanding 8-K Material Events →

0000723254false00007232542026-03-272026-03-27

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) March 27, 2026

Cintas Corporation

(Exact name of registrant as specified in charter)

Washington

0-11399

31-1188630

(State or Other Jurisdiction of Incorporation)

(Commission File Number)

(IRS Employer Identification No.)

 

6800 Cintas Boulevard, P.O. Box 625737,
Cincinnati,			Ohio						45262-5737
(Address of Principal Executive Offices)									(Zip Code)

Registrant's telephone number, including area code: (513) 459-1200

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))

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, no par value

CTAS

The NASDAQ Stock Market LLC

(NASDAQ Global Select Market)

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.

Entry into Credit Agreement

On March 27, 2026, Cintas Corporation No. 2 (“Cintas No. 2”), a Nevada corporation and wholly-owned subsidiary of Cintas Corporation, a Washington corporation (the “Corporation”), entered into a $2.0 billion revolving credit facility (the “Revolving Credit Facility”), which contains a letter of credit sub-facility of up to $300.0 million and a swing line sub-facility of up to $150.0 million pursuant to the terms and conditions of a Credit Agreement (the “Credit Agreement”) among Cintas No. 2, the lenders party thereto and KeyBank National Association, as Administrative Agent. The Credit Agreement provides Cintas No. 2 the ability to request increases in revolving commitments under the Revolving Credit Facility or new term loan facilities of up to $1.0 billion in the aggregate, subject to customary conditions.

The Revolving Credit Facility matures on March 27, 2031. Each swing loan made through the swing line sub-facility (a “Swing Loan”) has a maturity date of the earlier of (a) 15 days after the date such loan is made and (b) March 27, 2031. The obligations of Cintas No. 2 under the Revolving Credit Facility have been guaranteed by the Corporation and certain of the Corporation’s material domestic subsidiaries (collectively, the “Guarantors”). The interest rate per annum applicable to loans under the Revolving Credit Facility, will be, in the case of a Swing Loan, the Base Rate (as defined in the Credit Agreement), or, in the case of all other loans made under the Revolving Credit Facility and at Cintas No. 2’s option, equal to either (i) the relevant Term SOFR rate for the selected interest rate period plus an applicable margin of between 70 basis points and 114 basis points (as determined pursuant to the Credit Agreement) or (ii) the Base Rate.

The Credit Agreement contains customary covenants, including covenants that limit the ability of Cintas No. 2, the Corporation and the other Guarantors to, among other things (i) incur or suffer to exist certain liens and (ii) consolidate, merge, or sell substantially all of its assets. In addition, the Credit Agreement contains a financial covenant that requires the Corporation to maintain a leverage ratio of consolidated indebtedness to consolidated EBITDA of no more than 3.50 to 1.00 (which may be increased to 4.00 to 1.00 for four quarters in connection with certain material acquisitions). The Credit Agreement contains customary events of default. Upon the occurrence and during the continuance of an event of default, the commitments of the lenders may be terminated and all outstanding obligations of the loan parties under the Revolving Credit Facility may be declared immediately due and payable.

Certain of the agents and the lenders under the Credit Agreement have in the past provided, are currently providing and may in the future provide advisory and lending services to, or engage in transactions with, the Corporation and its subsidiaries or affiliates (including through certain subsidiaries or affiliates of such agents and lenders). The agents and the lenders have received, and may in the future receive, customary compensation from the Corporation and its subsidiaries or affiliates for such services and in respect of such transactions.

The foregoing summary of the material terms and conditions of the Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the Credit Agreement, a copy of which is attached to this Current Report on Form 8-K as Exhibit 10.1 and incorporated herein by reference.

Item 1.02. Termination of a Material Definitive Agreement.

The information provided in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 1.02.

Termination of Existing Credit Agreement

In connection with the entry into the Credit Agreement as described in Item 1.01 above, on March 27, 2026, Cintas No. 2 terminated all commitments and repaid all obligations under its existing Third Amended and Restated Credit Agreement, dated as of March 23, 2022 (as amended, restated, supplemented or otherwise modified from time to time prior to such date, the “Existing Credit Agreement”), by and among Cintas No. 2, the lenders party thereto and KeyBank National Association, as Administrative Agent.

Upon the termination of the Existing Credit Agreement, all of the obligations under the Existing Credit Agreement were terminated.

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 above is incorporated by reference into this Item 2.03.

Item 9.01. Financial Statements and Exhibits.

(d)Exhibits.

			Exhibit Number						Description
			10.1						Credit Agreement, dated as of March 27, 2026, among Cintas Corporation No.2, the Lenders party thereto and KeyBank National Association, as Administrative Agent.
			104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

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.

 

CINTAS CORPORATION

Date:

March 31, 2026

By:

/s/ Scott A. Garula

Scott A. Garula

Executive Vice President and Chief Financial Officer

FAQ

What new credit facility did Cintas (CTAS) enter into on March 27, 2026?

Cintas, through Cintas Corporation No. 2, entered into a new revolving credit facility totaling $2.0 billion. The agreement is with a syndicate of lenders and KeyBank National Association as Administrative Agent, providing committed financing support for the company’s ongoing corporate needs.

When does Cintas’ new $2.0 billion revolving credit facility mature?

The new revolving credit facility for Cintas matures on March 27, 2031. This long-dated maturity gives the company several years of committed bank financing, supporting liquidity planning and refinancing of shorter-term obligations over an extended horizon.

What sub-facilities are included in Cintas’ new revolving credit agreement?

The revolving credit agreement includes a $300.0 million letter of credit sub-facility and a $150.0 million swing line sub-facility. These components allow Cintas to issue standby letters of credit and access very short-term swing loans within the overall facility limits.

Can Cintas increase borrowing capacity under the new credit facility?

Yes. The credit agreement allows Cintas No. 2 to request increases in revolving commitments or new term loan facilities of up to $1.0 billion in aggregate. Any such increase is subject to customary conditions, giving the company optional additional borrowing capacity if needed.

What leverage covenant applies to Cintas under the new credit agreement?

The agreement requires Cintas to maintain a leverage ratio of consolidated indebtedness to consolidated EBITDA of no more than 3.50 to 1.00. This limit may increase to 4.00 to 1.00 for four quarters following certain material acquisitions, providing temporary flexibility around larger deals.

What happened to Cintas’ existing credit agreement from March 23, 2022?

In connection with entering the new credit agreement, Cintas No. 2 terminated all commitments and repaid all obligations under its existing Third Amended and Restated Credit Agreement dated March 23, 2022. All obligations under that prior facility were fully terminated.

Who guarantees Cintas’ obligations under the new revolving credit facility?

Obligations of Cintas Corporation No. 2 under the new revolving credit facility are guaranteed by the parent Cintas Corporation and certain of its material domestic subsidiaries. These guarantors backstop repayment to the lenders, strengthening credit support for the facility.

Filing Exhibits & Attachments

4 documents

Agreements & Contracts

• EX-10.1 EX-10.1 962.7 KB

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