UNF Agrees $300M Unsecured Revolver with $100M Upsize Option

Rhea-AI Filing Summary

UniFirst Corporation entered into a Third Amended and Restated Credit Agreement providing a $300,000,000 unsecured revolving credit facility, of which $150,000,000 may be used for letters of credit, and with scheduled maturity in 2030. The facility may be increased by up to $100,000,000, to a total of $400,000,000, subject to lender approval and the Company’s pro forma covenant compliance.

Borrowings priced today for SOFR-rate loans carry a spread of SOFR+1.00% based on the Company’s consolidated funded debt ratio, with default interest at an additional +2.00%. The agreement includes customary financial and restrictive covenants and events of default—such as nonpayment, covenant breaches, cross-defaults, material judgments, insolvency events and change of control—that could permit acceleration of obligations.

Positive

• $300,000,000 unsecured revolving credit facility increases available liquidity
• $150,000,000 sublimit for letters of credit supports contingent obligations and commercial needs
• Upsize option of $100,000,000 (to $400,000,000 total) provides additional capacity subject to covenant compliance
• Current pricing disclosed as SOFR+1.00% based on consolidated funded debt ratio (competitive baseline pricing)

Negative

• Facility includes financial and restrictive covenants that require ongoing compliance and could limit flexibility
• Events of default (including cross-defaults, material judgments, insolvency, change of control) permit acceleration of obligations
• Default interest increases borrowing cost by an additional +2.00% during an event of default

Insights

Financial Analyst

TL;DR: UniFirst secured a sizable $300M unsecured revolver with current pricing at SOFR+1.00%, plus an upsizing option to $400M.

The facility provides clear liquidity capacity with a sizeable letter-of-credit sublimit of $150M and an upsizing feature that can add up to $100M if covenants are satisfied. The unsecured nature and multi-year maturity extend funding runway without adding secured liens; current SOFR-based pricing at SOFR+1.00% (subject to leverage-based spread tiers) is competitively priced in the context disclosed. These features can support working capital and contingent obligations while preserving balance-sheet flexibility.

Risk Analyst

TL;DR: The agreement contains broad covenants and standard events of default that could accelerate debt if breached or in case of insolvency or change of control.

The contract explicitly ties pricing and availability to the Company’s consolidated funded debt ratio and includes restrictive covenants and multiple events of default (nonpayment, covenant violations, cross-defaults, invalidity of loan documents, material adverse judgments, insolvency events, change of control). Default interest is set at an additional +2.00%, increasing financing cost in stress scenarios. These provisions create clear compliance points that management must monitor to avoid acceleration risk.

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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): August 12, 2025

UNIFIRST CORPORATION

(Exact name of registrant as specified in its charter)

Massachusetts	001-08504		04-2103460
(State or other jurisdiction of incorporation)	(Commission File Number)		(IRS Employer Identification No.)
68 Jonspin Road, Wilmington, Massachusetts		01887
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: (978) 658-8888

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 (see General Instructions A.2. below):

☐	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, $0.10 par value per share	UNF	New York Stock Exchange

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.

On August 12, 2025, UniFirst Corporation and certain of its subsidiaries (the “Company”) entered into a Third Amended and Restated Credit Agreement (the “Credit Agreement”) with Bank of America, N.A., as Administrative Agent, Swing Line Lender and an L/C Issuer, the other lenders party thereto, BofA Securities, Inc., as Sole Lead Arranger and Sole Book Manager, Santander Bank, N.A., as Syndication Agent, and Wells Fargo Bank, N.A., as Documentation Agent. The Credit Agreement amends and restates the Second Amended and Restated Credit Agreement, dated as of March 26, 2021, by and among the Company, Bank of America, N.A., as Administrative Agent, Swing Line Lender and an L/C Issuer, the other lenders party thereto, BofA Securities, Inc., as Sole Lead Arranger and Sole Book Manager, Santander Bank, N.A., as Syndication Agent, and Wells Fargo Bank, National Association, as Documentation Agent.

The Credit Agreement provides for a $300,000,000 unsecured, revolving credit facility, of which $150,000,000 may be used for issuances of letters of credit. The Credit Agreement is scheduled to mature on August 12, 2030. Provided there is no default or event of default under the Credit Agreement and the Company would be in compliance with its financial covenants on a pro forma basis, the Company may, from time to time, request an increase in the aggregate commitments under the Credit Agreement (in the form of revolving or term tranches) of up to $100,000,000, for a total aggregate commitment of up to $400,000,000.

As of August 12, 2025, the current interest rate for any Secured Overnight Financing Rate (“SOFR”) rate borrowings under the Credit Agreement, based on the Company’s current consolidated funded debt ratio, is SOFR plus 1.00%. The specific spread over SOFR will depend on the Company’s consolidated funded debt ratio. During an event of default under the Credit Agreement, obligations under the Credit Agreement will bear interest at a rate per annum equal to the interest rate then in effect plus 2.00%.

The Credit Agreement contains provisions requiring the Company to maintain compliance with certain financial and restrictive covenants. The Credit Agreement also contains certain events of default, including non-payment of principal, interest or fees, violation of specified covenants, cross-defaults to certain other indebtedness, invalidity of any loan document relating to the facility, judgments having a material adverse effect, insolvency events, and change of control, subject, in certain instances, to cure periods. Obligations under the Credit Agreement may be declared due and payable upon the occurrence of such events of default.

A copy of the Credit Agreement is attached to this Current Report on Form 8-K as Exhibit 10.1 and is incorporated herein by reference. The description above is a summary of the Credit Agreement, does not provide a complete description of the Credit Agreement, and is qualified in its entirety by reference to the complete text of the Credit Agreement.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

Please see the discussion set forth in Item 1.01 of this Current Report on Form 8-K, which discussion is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number		Description
10.1		Third Amended and Restated Credit Agreement, by and among UniFirst Corporation and certain of its subsidiaries, as Borrowers, Bank of America, N.A., as Administrative Agent, Swing Line Lender and an L/C Issuer, the other lenders party thereto, BofA Securities, Inc., as Sole Lead Arranger and Sole Book Manager, Santander Bank, N.A., as Syndication Agent and Wells Fargo Bank, N.A., as Documentation 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.

		UNIFIRST CORPORATION
Date: August 14, 2025		By:	/s/ Steven S. Sintros
			Steven S. Sintros
			President and Chief Executive Officer

FAQ

What did UniFirst (UNF) announce in this 8-K?

UniFirst entered into a Third Amended and Restated Credit Agreement establishing a $300,000,000 unsecured revolving credit facility with a $150,000,000 letters-of-credit sublimit.

How large can the UniFirst (UNF) credit facility become?

The agreement permits the Company to request increases of up to $100,000,000, raising total commitments to $400,000,000, subject to lender approval and pro forma covenant compliance.

What is the interest rate under UniFirst's (UNF) new credit agreement?

Current pricing for SOFR-rate borrowings is disclosed as SOFR+1.00% based on the Company’s consolidated funded debt ratio; default interest is an additional +2.00%.

Is the UniFirst (UNF) facility secured or unsecured?

The disclosed facility is described as unsecured.

Who are the lenders and arrangers on the UniFirst (UNF) credit agreement?

Bank of America, N.A. acts as Administrative Agent, Swing Line Lender and L/C Issuer; BofA Securities, Inc. is Sole Lead Arranger and Sole Book Manager; Santander Bank, N.A. is Syndication Agent; Wells Fargo Bank, N.A. is Documentation Agent.