[8-K] HELEN OF TROY LTD Reports Material Event

Rhea-AI Filing Summary

Helen of Troy Limited entered into a First Amendment to its existing Credit Agreement with Bank of America and other lenders. The amendment reduces the revolving credit facility commitment from $1.0 billion to $750.0 million and adjusts interest rate pricing for higher leverage levels, so that when the Net Leverage Ratio is at or above 4.00 to 1.00, borrowings bear floating interest at the Base Rate plus a 1.375% margin or Term SOFR plus a 2.375% margin, with an additional 0.10% credit spread for Term SOFR.

The amendment also revises key financial covenants. The interest coverage test now uses a Consolidated EBITDA measure in the numerator, and the maximum permitted Leverage Ratio steps down over time, from 4.50 to 1.00 through August 31, 2026 to 3.50 to 1.00 from August 31, 2027 onward. Subject to conditions for a Qualified Acquisition, the borrower may elect a Leverage Holiday after August 31, 2027. Certain investment and indebtedness baskets are reduced until August 31, 2027, while customary events of default remain in place.

Insights

Credit & Capital Structure Analyst

Amended credit facility lowers size, tightens leverage path, but keeps liquidity access.

The company reduced its revolving credit facility commitment from $1.0 billion to $750.0 million, signalling a recalibration of available bank liquidity rather than a new facility. Pricing at higher leverage levels now ranges up to Base Rate plus a 1.375% margin or Term SOFR plus a 2.375% margin, with a 0.10% credit spread on Term SOFR, which defines the cost of debt if leverage rises.

Key covenant changes include using Consolidated EBITDA instead of EBIT for the interest coverage ratio and a scheduled step-down in the maximum Leverage Ratio from 4.50% to 3.50% over several fiscal quarters ending after August 31, 2027. This creates a clearer glidepath toward lower leverage while preserving flexibility, as the borrower may elect a Leverage Holiday in connection with a Qualified Acquisition after that date.

Until August 31, 2027, reductions in general investment, unsecured indebtedness and Permitted Receivables Financing baskets modestly constrain incremental capital deployment under the facility. Overall impact on the investment thesis depends on how the company manages leverage and acquisition activity within these updated limits.

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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

Date of report (Date of earliest event reported)  November 25, 2025

HELEN OF TROY LIMITED

(Exact name of registrant as specified in its charter)

Commission File Number:  001-14669

Bermuda						74-2692550
(State or other jurisdiction						(IRS Employer
of incorporation)						Identification No.)

Clarendon House

2 Church Street

Hamilton HM 11, Bermuda

(Address of principal executive offices)

201 E. Main Street, Suite 300

El Paso, Texas 79901

(Registrant’s United States mailing address)

915-225-8000

(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:

☐ 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 Shares, $0.10 par value per share

HELE

The NASDAQ Stock Market LLC

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

First Amendment to Credit Agreement

On November 25, 2025, Helen of Troy Limited (the “Company”) and Helen of Troy Texas Corporation, a subsidiary of the Company and the borrower (“Borrower”), entered into an amendment (the “Amendment”) to the Credit Agreement dated February 15, 2024 (the “Credit Agreement”) with Bank of America, N.A., as administrative agent, and the other lenders party thereto. All obligations under the Credit Agreement are unconditionally guaranteed by the Company and certain of the Company’s subsidiaries. The Amendment was approved by all of the lenders party to the Credit Agreement.

The Amendment provides for the following:

Revolving Facility Commitment Reduction — The Amendment reduces the commitment under the revolving credit facility from $1.0 billion to $750.0 million.

Applicable Rate — The Amendment adds a maximum tier level pursuant to which, if the Net Leverage Ratio is greater than or equal to 4.00 to 1.00, then borrowings under the Credit Agreement bear floating interest at either the Base Rate or Term SOFR, plus a margin of 1.375% and 2.375% for Base Rate and Term SOFR borrowings, respectively, plus a credit spread of 0.10% for Term SOFR borrowings (as those terms are defined in the Credit Agreement).

Financial Covenants — The Amendment amends the Interest Coverage Ratio to replace the numerator so that it uses a Consolidated EBITDA measure instead of a Consolidated EBIT measure (as those terms are defined in the Credit Agreement). Additionally, the Amendment amends the Leverage Ratio (as defined in the Credit Agreement) financial covenant so that, as of the end of any fiscal quarter of the Company, the Leverage Ratio is not permitted to be greater than set forth below:

Fiscal Quarter Ending			Maximum Leverage Ratio
November 30, 2025			4.50 to 1.00
February 28, 2026 through August 31, 2026			4.50 to 1.00
November 30, 2026			4.00 to 1.00
February 28, 2027 through May 31, 2027			3.75 to 1.00
August 31, 2027 and each fiscal quarter thereafter			3.50 to 1.00

If the Borrower is in compliance with the terms of the Credit Agreement and meets the other terms and conditions in the Credit Agreement relating to a Qualified Acquisition, the Borrower may elect to use the Leverage Holiday in connection with the consummation of the Qualified Acquisition after August 31, 2027 (as those terms are defined in the Credit Agreement).

Other Negative Covenants — The Amendment provides that, until August 31, 2027, a general investments basket, an unsecured indebtedness basket and the Permitted Receivables Financings (as defined in the Credit Agreement) basket in the Credit Agreement were reduced, as described in the Amendment.

The Credit Agreement contains customary events of default, including, among others, non-payment by any borrower, non-compliance with certain covenants by the Company or its subsidiaries party to such agreement, the bankruptcy filing of the Company or its subsidiaries, and a default by the Company or its subsidiaries under certain other agreements related to indebtedness of the Company or its subsidiaries. Upon an event of default under the Credit Agreement, the requisite lenders, or Bank of America with the

approval of the requisite lenders, may among other things accelerate the maturity of any amounts outstanding under such agreement and terminate any commitments and obligations of the lenders thereunder.

The foregoing description of the Amendment does not purport to be complete and is qualified in its entirety by reference to the Amendment, which is filed with this Current Report on Form 8-K.

Item 7.01    Regulation FD Disclosure.

On November 25, 2025, the Company issued a press release announcing the matters described in this Current Report on Form 8-K. The press release is furnished herewith as Exhibit 99.1.

The information in this Current Report on Form 8-K provided under Item 7.01 and Exhibit 99.1 attached hereto are furnished to, but shall not be deemed filed with, the Securities and Exchange Commission or incorporated by reference into the Company’s filings under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.

Certain written and oral statements made by the Company and subsidiaries of the Company may constitute “forward-looking statements” as defined under the Private Securities Litigation Reform Act of 1995. This includes statements made in this Form 8-K and the exhibits attached hereto, in other filings with the SEC, and in certain other oral and written presentations. Generally, the words “anticipates”, “assumes”, “believes”, “expects”, “plans”, “may”, “will”, “might”, “would”, “should”, “seeks”, “estimates”, “project”, “predict”, “potential”, “currently”, “continue”, “intends”, “outlook”, “forecasts”, “targets”, “reflects”, “could”, and other similar words identify forward-looking statements. All statements that address operating results, events or developments that the Company expects or anticipates may occur in the future, including statements related to sales, expenses, including cost reduction measures, earnings per share results, and statements expressing general expectations about future operating results, are forward-looking statements and are based upon its current expectations and various assumptions. The Company currently believes there is a reasonable basis for these expectations and assumptions, but there can be no assurance that the Company will realize these expectations or that these assumptions will prove correct. Forward-looking statements are only as of the date they are made and are subject to risks, many of which are beyond the Company’s control, that could cause them to differ materially from actual results. Accordingly, the Company cautions readers not to place undue reliance on forward-looking statements. The forward-looking statements contained in this Form 8-K and the exhibits attached hereto should be read in conjunction with, and are subject to and qualified by, the risks described in the Company’s Form 10-K for the year ended February 28, 2025, and in the Company’s other filings with the SEC. Investors are urged to refer to the risk factors referred to above for a description of these risks. Such risks include, among others, the geographic concentration of certain United States (“U.S.”) distribution facilities which increases its risk to disruptions that could affect the Company’s ability to deliver products in a timely manner, the occurrence of cyber incidents or failure by the Company or its third-party service providers to maintain cybersecurity and the integrity of confidential internal or customer data, a cybersecurity breach, obsolescence or interruptions in the operation of the Company’s central global Enterprise Resource Planning systems and other peripheral information systems, the Company’s ability to develop and introduce a continuing stream of innovative new products to meet changing consumer preferences, actions taken by large customers that may adversely affect the Company’s gross profit and operating results, the Company’s dependence on sales to several large customers and the risks associated with any loss of, or substantial decline in, sales to top customers, the Company’s dependence on third-party manufacturers, most of which are located in Asia, and any inability to obtain products from such manufacturers or diversify production to other regions or source the same product in multiple regions or implement potential tariff mitigation plans, the Company’s ability to deliver products to its customers in a timely manner and according to their fulfillment standards, the risks associated with trade barriers, exchange controls, expropriations, and other risks associated with domestic and foreign operations including uncertainty and business interruptions resulting from political changes and events in

the U.S. and abroad, and volatility in the global credit and financial markets and economy, the Company’s dependence on the strength of retail economies and vulnerabilities to any prolonged economic downturn, including a downturn from the effects of macroeconomic conditions, any public health crises or similar conditions, risks associated with weather conditions, the duration and severity of the cold and flu season and other related factors, the Company’s reliance on its Chief Executive Officer and a limited number of other key senior officers to operate its business, risks associated with the use of licensed trademarks from or to third parties, the Company’s ability to execute and realize expected synergies from strategic business initiatives such as acquisitions, including Olive & June, divestitures and global restructuring plans, including Project Pegasus, the risks of significant tariffs or other restrictions continuing to be placed on imports from China, Mexico or Vietnam, including by the current U.S. presidential administration which has promoted and implemented plans to raise tariffs and pursue other trade policies intended to restrict imports, or any retaliatory trade measures taken by China, Mexico or Vietnam, the risks of potential changes in laws and regulations, including environmental, employment and health and safety and tax laws, and the costs and complexities of compliance with such laws, the risks associated with increased focus and expectations on climate change and other sustainability matters, the risks associated with significant changes in or the Company’s compliance with regulations, interpretations or product certification requirements, the risks associated with global legal developments regarding privacy and data security that could result in changes to its business practices, penalties, increased cost of operations, or otherwise harm the business, the Company’s dependence on whether it is classified as a “controlled foreign corporation” for U.S. federal income tax purposes which impacts the tax treatment of its non-U.S. income, the risks associated with legislation enacted in Bermuda and Barbados in response to the European Union’s review of harmful tax competition and additional focus on compliance with economic substance requirements by Bermuda and Barbados, the risks associated with accounting for tax positions and the resolution of tax disputes, the risks associated with product recalls, product liability and other claims against the Company, and associated financial risks including but not limited to, increased costs of raw materials, energy and transportation, significant additional impairment of the Company’s goodwill, indefinite-lived and definite-lived intangible assets or other long-lived assets, risks associated with foreign currency exchange rate fluctuations, the risks to the Company’s liquidity or cost of capital which may be materially adversely affected by constraints or changes in the capital and credit markets, interest rates and limitations under its financing arrangements, and projections of product demand, sales and net income, which are highly subjective in nature, and from which future sales and net income could vary by a material amount. The Company undertakes no obligation to publicly update or revise any forward-looking statements as a result of new information, future events or otherwise.

Item 9.01    Financial Statements and Exhibits.

(d)        Exhibits

Exhibit Number						Description
10.1						First Amendment to Credit Agreement dated November 25, 2025, by and among Helen of Troy Texas Corporation, Helen of Troy Limited, Bank of America, N.A., as administrative agent, and the other lenders party thereto.
99.1						Press release, dated November 25, 2025.
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.

			HELEN OF TROY LIMITED
Date: November 25, 2025			/s/ Brian L. Grass
			Brian L. Grass
			Chief Financial Officer, Principal Financial Officer and Principal Accounting Officer

FAQ

What did Helen of Troy (HELE) change in its credit facility?

Helen of Troy entered into a First Amendment to its Credit Agreement that reduces the revolving credit facility commitment, revises interest rate pricing at higher leverage levels, and updates certain financial and negative covenants.

By how much was Helen of Troy’s revolving credit facility reduced?

The revolving credit facility commitment was reduced from $1.0 billion to $750.0 million under the amended Credit Agreement.

How do interest rates change for Helen of Troy under higher leverage?

If the Net Leverage Ratio is at or above 4.00 to 1.00, borrowings bear floating interest at the Base Rate plus a 1.375% margin or Term SOFR plus a 2.375% margin, with an additional 0.10% credit spread for Term SOFR borrowings.

What are the new maximum leverage ratio covenants for HELE?

The maximum Leverage Ratio is 4.50 to 1.00 through the fiscal quarter ending August 31, 2026, stepping down to 4.00 to 1.00 for the quarter ending November 30, 2026, 3.75 to 1.00 for quarters ending February 28, 2027 through May 31, 2027, and 3.50 to 1.00 from the quarter ending August 31, 2027 onward.

Can Helen of Troy still pursue acquisitions under the amended Credit Agreement?

Yes. If the borrower meets the Credit Agreement conditions for a Qualified Acquisition, it may elect to use a Leverage Holiday in connection with a Qualified Acquisition consummated after August 31, 2027.

What other covenant changes affect Helen of Troy’s flexibility?

Until August 31, 2027, the amendment reduces a general investments basket, an unsecured indebtedness basket, and the Permitted Receivables Financings basket, modestly tightening certain forms of additional borrowing and investment under the facility.

Does the amended Credit Agreement still include customary events of default?

Yes. The Credit Agreement continues to include customary events of default, including non-payment, covenant non-compliance, certain bankruptcy events, and defaults under specified other indebtedness, which can allow lenders to accelerate amounts due and terminate commitments.