HNI Corporation refinances $498.75M term loan
HNI Corporation refinanced its term debt by entering into Amendment No. 3 to its Credit Agreement, creating a new $498.75 million tranche of term loans maturing in 2032.
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Form Type
8-K
Rhea-AI Filing Summary
HNI Corporation refinanced its term debt by entering into Amendment No. 3 to its Credit Agreement, creating a new $498.75 million tranche of term loans maturing in 2032. The proceeds were used to repay all outstanding Initial Tranche B Term Loans.
The new Replacement Term Loans amortize at 1.00% per year, with the first principal installment due on or about September 30, 2026. Interest margins under the amended facility are set at 1.75% for SOFR-based loans and 0.75% for Alternate Base Rate loans, reflecting the updated pricing on HNI’s long-term borrowing.
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
Replacement Term Loans size: $498.75 million
Maturity year: 2032
Amortization rate: 1.00% per annum
+3 more
6 metrics
Replacement Term Loans size
$498.75 million
New tranche established by Amendment No. 3
Maturity year
2032
Replacement Term Loans final maturity
Amortization rate
1.00% per annum
Scheduled principal amortization of Replacement Term Loans
First installment date
on or about September 30, 2026
First principal payment on Replacement Term Loans
SOFR loan margin
1.75%
Applicable Percentage for SOFR Replacement Term Loans
Alternate Base Rate margin
0.75%
Applicable Percentage for ABR Replacement Term Loans
Key Terms
Material Definitive Agreement, Credit Agreement, Replacement Term Loans, SOFR Loans, +1 more
5 terms
Material Definitive Agreement regulatory
"Item 1.01 Entry into a Material Definitive Agreement. Credit Agreement Refinancing"
A material definitive agreement is a legally binding contract that creates major, long‑term obligations or rights for a company, such as loans, asset sales, mergers, or supplier deals. Think of it like a mortgage or lease for a business: it can change future cash flow, risk and control, so investors watch these agreements closely because they can materially affect a company’s value, financial health and stock price.
Credit Agreement financial
"which amends that certain Credit Agreement, dated as of September 5, 2025"
A credit agreement is a written loan contract between a borrower and a bank or other lender that lays out how much money can be borrowed, the interest rate, repayment schedule, fees, and the rules the borrower must follow. For investors, it matters because those terms affect a company’s cash costs, borrowing flexibility and risk of default — similar to how a mortgage’s rules determine a homeowner’s monthly budget and freedom to make changes.
Replacement Term Loans financial
"provides for a new $498.75 million tranche of term loans maturing in 2032 (the “Replacement Term Loans”)"
SOFR Loans financial
"the Applicable Percentage is (i) 1.75% for the Replacement Term Loans that are SOFR Loans"
Alternate Base Rate Loans financial
"and (ii) 0.75% for the Replacement Term Loans that are Alternate Base Rate Loans"
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What credit agreement change did HNI (HNI) disclose on June 10, 2026?
HNI disclosed Amendment No. 3 to its Credit Agreement, adding a new $498.75 million tranche of term loans maturing in 2032. The amendment updates the company’s long-term borrowing structure and replaces its prior Initial Tranche B Term Loans.
How large is HNI’s new term loan under the amended credit agreement?
The amendment provides a new $498.75 million tranche of Replacement Term Loans. These loans are part of HNI’s refinanced credit structure and were used to fully repay its outstanding Initial Tranche B Term Loans under the prior Credit Agreement.
When do HNI’s new Replacement Term Loans mature and start amortizing?
The Replacement Term Loans mature in 2032 and amortize at 1.00% per annum. HNI stated the first scheduled principal installment on this new tranche will be payable on or about September 30, 2026 under the amended terms.
What interest margins apply to HNI’s new Replacement Term Loans?
HNI’s amendment sets the Applicable Percentage at 1.75% for SOFR Loans and 0.75% for Alternate Base Rate Loans. These margins apply to the new $498.75 million Replacement Term Loans established under Amendment No. 3 to the Credit Agreement.
How did HNI use the proceeds from the new $498.75 million term loans?
HNI used the proceeds from the new $498.75 million Replacement Term Loans to refinance all outstanding Initial Tranche B Term Loans. This shifts the company’s existing term debt into the new 2032-maturity tranche with updated amortization and interest margin terms.
Which bank serves as administrative agent for HNI’s amended credit facility?
Wells Fargo Bank, National Association, continues to serve as Administrative Agent under the amended Credit Agreement. It acts as the primary administrative and coordinating bank for the lenders providing the new $498.75 million Replacement Term Loans maturing in 2032.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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