KALU extends ABL maturity, adds $200M incremental option and FILO

Rhea-AI Filing Summary

Kaiser Aluminum Corporation entered into Amendment No. 5 to its asset‑based credit agreement, modifying its revolving facility and key terms. The maturity date now extends to the earlier of March 1, 2028 October 14, 2030. The amendment also adjusts the unused line fee to 0.20%–0.25% per annum based on average usage.

The facility permits borrowings up to the lesser of $575 million and the borrowing base, and allows the Company to request up to an additional $200 million in revolving commitments, plus a potential FILO tranche, subject to conditions and lender agreement. Interest is based on a base rate or SOFR + 125–150 bps 25–50 bps), depending on availability. The agreement includes customary covenants and events of default; if minimum availability thresholds are not met, a consolidated fixed charge coverage ratio of at least 1.0x applies. The facility is secured by a first‑priority lien on substantially all accounts receivable, inventory, and related assets.

Insights

Credit markets analyst

Amended ABL extends maturity and adds incremental capacity options.

The company updated its asset‑based revolver to push the maturity to the earlier of Mar 1, 2028 or Oct 14, 2030, with the shorter date conditioned on addressing the senior notes due 2028. The borrowing cap remains the lesser of $575 million and the borrowing base, preserving liquidity tied to receivables, inventory, and eligible cash.

Pricing shifts include an unused line fee of 0.20%–0.25% and interest of SOFR plus 125–150 bps 25–50 bps), linked to availability. The amendment permits requesting up to $200 million in additional revolving commitments and a FILO tranche, subject to lender agreement.

Covenants are typical for ABLs, with a springing fixed charge coverage ratio minimum of 1.0x when availability falls below set thresholds. Collateral remains first‑priority on receivables and inventory. Actual liquidity impact will depend on borrowing base levels and any incremental commitments agreed by lenders.

KAISER ALUMINUM CORP false 0000811596 0000811596 2025-10-14 2025-10-14

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): October 14, 2025

KAISER ALUMINUM CORPORATION

(Exact Name of Registrant as Specified in its Charter)

Delaware		1-09447		94-3030279
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

1550 West McEwen Drive, Suite 500 Franklin, Tennessee		37067
(Address of Principal Executive Office)		(Zip Code)

(629) 252-7040

(Registrant’s telephone number, including area code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

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, par value $0.01 per share		KALU		Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

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 standard provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 1.01. Entry into a Material Definitive Agreement.

On October 14, 2025, Kaiser Aluminum Corporation (the “Company”) and certain subsidiaries of the Company (collectively with the Company, the “Borrowers”) entered into the Amendment No. 5 to Credit Agreement and Loan Documents with Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent, and the other financial institutions party thereto (the “Amendment”), which modifies the Credit Agreement dated as of October 30, 2019 (as amended by the Amendment and all prior amendments thereto, the “Amended Credit Agreement”). The Amendment included, among other modifications, (1) an extension of the maturity date from April 7, 2027 to the earlier of (i) March 1, 2028, if by that date the scheduled maturity of the Company’s senior notes due 2028 has not been extended to a date not earlier than 90 days after October 14, 2030, repaid in full, or refinanced or replaced on terms mutually satisfactory to Borrowers and Wells Fargo; and (ii) October 14, 2030, (2) a change to the monthly unused line from 0.25% per annum to either 0.20% or 0.25% per annum depending on average revolver usage, in each case, multiplied by the result of (i) the aggregate amount of revolver commitments, less (ii) the average revolver usage during the immediately preceding month, (3) allowing the Company to request an increase of the revolving commitments by up to an amount equal to $200 million plus an additional amount for a first-in last-out (FILO) tranche, subject to certain conditions and the agreement of one or more lenders to provide such increased commitment, (4) allowing the Borrowers and any of their subsidiaries that have guaranteed obligations outstanding under the Amended Credit Agreement to (i) incur secured debt ranking junior in lien priority to the liens securing the obligations under the Amended Credit Agreement and (ii) incur debt secured by liens upon assets of any loan party which do not constitute collateral securing the obligations under the Amended Credit Agreement and (5) increasing asset sale capacity.

Under the Amended Credit Agreement, the Company may borrow from time to time an aggregate amount equal to the lesser of $575 million and a borrowing base comprised of (a) 90% of eligible accounts receivable in which the account debtor is an investment-grade domestic account debtor, less the amount, if any, of the dilution reserve, (b) 85% of eligible accounts receivable in which the account debtor is a domestic account debtor, but not an investment-grade domestic account debtor, less the amount, if any, of the dilution reserve, (c) the lesser of (i) 85% of eligible accounts receivable in which the account debtor is not a domestic account debtor, less the amount, if any, of the dilution reserve and (ii) an amount equal to 25% of the lesser of (A) maximum revolver amount or (B) borrowing base, (d) the lesser of (i) the product of 75% multiplied by the value of eligible inventory and (ii) the product of 85% multiplied by the net recovery percentage identified in the most recent acceptable appraisal of inventory, multiplied by the value of eligible inventory, (e) at the option of the Company, 100% of eligible cash, and (f) less certain reserves, all as specified in the Amended Credit Agreement (of which up to a maximum of $50 million may be utilized for letters of credit) and, at maturity, all principal, interest and other amounts outstanding under the Amended Credit Agreement will be due and payable.

Borrowings under the Amended Credit Agreement bear interest at a rate equal to either a base rate or the secured overnight financing rate (SOFR), plus, in each case, a specified variable percentage of between 125 basis points and 150 basis points for SOFR loans (or 25 basis points and 50 basis points for base rate loans) determined by reference to the then-remaining borrowing availability under the Credit Agreement and, in certain instances, a fixed margin.

Amounts owed under the Amended Credit Agreement may be accelerated upon the occurrence of various events of default set forth in the Amended Credit Agreement, including, without limitation, the failure to make principal or interest payments when due and breaches of covenants, representations and warranties set forth in the Amended Credit Agreement. The Amended Credit Agreement places restrictions on the ability of the Company and certain of its subsidiaries to, among other things, grant liens, engage in mergers, sell assets, incur debt, enter into sale and leaseback transactions, make investments, undertake transactions with affiliates, prepay and repurchase debt, pay dividends and repurchase shares. In addition, if certain minimum availability thresholds are not met, as specified in

the Amended Credit Agreement, the Borrowers will not permit their fixed charge coverage ratio on a consolidated basis to be less than 1.0 to 1.0. The Amended Credit Agreement is secured by a first priority lien (subject to certain liens permitted under the Amended Credit Agreement) on substantially all of the accounts receivable and inventory and certain other assets and proceeds relating thereto of the Borrowers.

The preceding description of the Amendment is a summary and is qualified in its entirety by the Amendment, which is filed as Exhibit 10.1 hereto and is incorporated herein by reference.

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 under 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		Amendment No. 5 to Credit Agreement and Loan Documents, dated as of October 14, 2025, by and among the Company and certain affiliates of the Company, as borrowers, Wells Fargo Bank, National Association, as agent for the lenders, and the lenders party thereto.
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.

KAISER ALUMINUM CORPORATION (Registrant)
By:		/s/ John M. Donnan
		John M. Donnan

Date: October 16, 2025

FAQ

What did KALU change in its credit agreement?

The company amended its ABL facility, extending maturity to the earlier of March 1, 2028 October 14, 2030, and adjusting fees and permissions.

What is the maximum borrowing capacity under KALU’s facility?

Borrowings are permitted up to the lesser of $575 million and the borrowing base, with up to $50 million available for letters of credit.

Can Kaiser Aluminum increase its revolving commitments?

Yes. It may request up to an additional $200 million in revolving commitments, plus an additional FILO tranche, subject to conditions and lender agreement.

What are the interest and fee terms after the amendment?

Interest is at a base rate or SOFR + 125–150 bps 25–50 bps), and the unused line fee is 0.20%–0.25% per annum based on usage.

What collateral secures the amended facility?

A first‑priority lien on substantially all accounts receivable, inventory, and related assets and proceeds.

What financial covenant applies if availability declines?

If minimum availability thresholds are not met, a consolidated fixed charge coverage ratio of at least 1.0x applies.

Does the amendment change debt incurrence permissions?

Yes. It permits certain junior‑lien secured debt and liens on assets that are not collateral under the ABL, and increases asset sale capacity.