Karman Holdings trims rates on $763,961,000 term loans
Karman Holdings Inc. entered into a Fifth Amendment to its Credit Agreement with Citibank, N.A., as Administrative Agent and Collateral Agent, on August 3, 2026.
Rhea-AI Filing Summary
Karman Holdings Inc. entered into a Fifth Amendment to its Credit Agreement with Citibank, N.A., as Administrative Agent and Collateral Agent, on August 3, 2026. The company refinanced existing term loans with an aggregate principal amount of $763,961,000, reducing the interest rate on those loans by 50 basis points to SOFR plus 2.25%.
The amendment also lowers pricing on the revolving credit facility by 50 basis points at each level of its leverage-based pricing grid, with the highest level now set at SOFR plus 2.00%. Except for these pricing changes, the other terms and conditions of the Credit Agreement remain in place as previously disclosed.
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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
Refinanced term loans principal: $763,961,000
New term loan interest margin: SOFR plus 2.25%
Revolver pricing reduction: 50 basis points
+2 more
5 metrics
Refinanced term loans principal
$763,961,000
Aggregate principal amount of existing term loans refinanced under the Fifth Amendment
New term loan interest margin
SOFR plus 2.25%
Interest rate on refinanced term loans after a 50 basis point reduction
Revolver pricing reduction
50 basis points
Reduction in interest rate at each level of the revolving credit facility leverage-based pricing grid
Highest revolver rate level
SOFR plus 2.00%
Highest level in the leverage-based pricing grid for the revolving credit facility after amendment
Original Credit Agreement date
April 1, 2025
Execution date of the Credit Agreement later amended by five separate amendments
Key Terms
SOFR, revolving credit facility, leverage-based pricing grid, Administrative Agent, +1 more
5 terms
SOFR financial
"to reduce the interest rate applicable thereto by 50 basis points to SOFR plus 2.25%"
The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.
revolving credit facility financial
"reduced the interest rate applicable to its revolving credit facility by 50 basis points"
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.
leverage-based pricing grid financial
"its revolving credit facility by 50 basis points for each level of its leverage-based pricing grid"
A leverage-based pricing grid is a structured schedule that sets fees, interest rates or margins based on how much borrowed money (leverage) a customer uses; higher leverage typically triggers higher costs. Think of it like a taxi meter that charges more per mile the faster or farther you go — it links price to risk and size. Investors care because this grid directly affects borrowing costs, potential returns and the effective risk of leveraged positions.
Administrative Agent financial
"by and among the Company, Citibank, N.A., as Administrative Agent and Collateral Agent"
An administrative agent is a bank or financial firm appointed to handle the day-to-day paperwork and communication for a group of lenders on a loan or credit agreement, acting as the central point for collecting payments, distributing funds, monitoring covenants, and sharing information. For investors, the administrative agent matters because it influences how quickly lenders receive updates, how smoothly repayments and waivers are handled, and how effectively the lending group enforces terms — think of it as a property manager coordinating tasks for multiple owners.
Collateral Agent financial
"Citibank, N.A., as Administrative Agent and Collateral Agent"
A collateral agent is a neutral third party that holds and manages the assets pledged to secure a loan on behalf of a group of lenders, acting like the keyholder to a shared safe. If the borrower falls behind, the collateral agent enforces the lenders’ rights and coordinates who gets what, which affects how quickly and how much lenders can recover. Investors care because the agent’s role shapes recovery prospects, enforcement speed and the clarity of lenders’ claims.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What change did Karman Holdings (KRMN) make to its term loans on August 3, 2026?
Karman Holdings refinanced term loans totaling $763,961,000, cutting the interest margin by 50 basis points to SOFR plus 2.25%. This change is documented in the Fifth Amendment to its Credit Agreement with Citibank and other lenders.
How did the Fifth Amendment affect Karman Holdings (KRMN) revolving credit facility rates?
The Fifth Amendment reduced rates on Karman Holdings’ revolving credit facility by 50 basis points at each level of its leverage-based pricing grid. After the change, the highest pricing level is set at SOFR plus 2.00%, lowering interest costs across usage tiers.
Who is the administrative agent under Karman Holdings (KRMN) amended Credit Agreement?
Citibank, N.A. serves as Administrative Agent and Collateral Agent under Karman Holdings’ Credit Agreement, as amended. The Fifth Amendment continues this role while primarily revising interest-rate terms on the term loans and revolving credit facility.
Did the Fifth Amendment change other terms of Karman Holdings (KRMN) Credit Agreement?
Other than updated pricing, the Fifth Amendment leaves the existing terms and conditions of the Credit Agreement in place. The company states that, except for the modified interest rates, the Credit Agreement continues as previously disclosed.
When was Karman Holdings (KRMN) original Credit Agreement executed?
Karman Holdings’ Credit Agreement was originally dated April 1, 2025, and has since been amended five times. The Fifth Amendment on August 3, 2026, follows prior amendments executed in May, October 2025, and February and March 2026.
AI-generated analysis. How Rhea-AI works. Not financial advice.
