The refinancing extends maturities and provides committed funding for the AMS acquisition, reducing near-term refinancing risk. However, the conversion of $400M unsecured notes into secured debt and the addition of $200M in new secured term loans increases leverage and encumbers assets. Monitor the pending AMS acquisition closing and the company's leverage trajectory post-acquisition.
Price Chart
Executive Summary
Korn Ferry entered into a $1.45 billion amended and restated credit agreement, establishing a new $600 million senior secured term loan facility and continuing its existing $850 million senior secured revolving credit facility, both maturing in five years. The company borrowed the full $600 million term loan on the closing date, using part of the proceeds to redeem all $400 million of its outstanding 4.625% Senior Notes due 2027 and intending to use the balance to help finance its pending acquisition of AMS. This refinancing extends maturities, replaces existing debt with secured debt, and provides committed funding for the acquisition.
Key Financial Metrics
Key Facts
- Korn Ferry entered into a $1.45 billion amended and restated credit agreement on August 18, 2026.
- The new credit agreement includes a $600 million senior secured term loan facility and an $850 million senior secured revolving credit facility.
- Both the term loan and revolving credit facilities mature five years from the effective date (August 18, 2031).
- The company borrowed the full $600 million term loan on the closing date.
- Proceeds from the term loan were used to redeem all $400 million of the outstanding 4.625% Senior Notes due 2027.
- The remaining proceeds are intended to finance a portion of the purchase price for the pending acquisition of AMS (Alexander Mann).
- The obligations under the credit agreement are secured by substantially all of the assets of the company and its guarantor subsidiaries.
- Interest rates on the facilities are based on Term SOFR plus a margin of 1.125% to 2.00%, or base rate plus 0.125% to 1.00%, depending on the company's consolidated net leverage ratio.
Financial Impact
Korn Ferry replaced $400M of unsecured notes with $600M of secured term loan debt, increasing total secured debt by $200M and adding $850M of secured revolver capacity. The redemption of the $400M notes was funded from the term loan proceeds.
Risk Factors
- Increased leverage from the new $600M term loan and the pending AMS acquisition could pressure the consolidated net leverage ratio.
- The new credit agreement is secured by substantially all assets, increasing creditor priority and potentially limiting future unsecured borrowing flexibility.
- Integration risk associated with the pending AMS acquisition could impact financial performance and covenant compliance.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-357084 |
| Document: d417124d8k.htm | 0001193125-26-357084 |
| Document: 0001193125-26-357084-index-headers.html | 0001193125-26-357084 |
| Document: 0001193125-26-357084-index.html | 0001193125-26-357084 |
| Document: 0001193125-26-357084.txt | 0001193125-26-357084 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | SC 13G/A | $78.51 | awaiting T+20 | — | $76.07 (−3.11%) |
Sep 28, 2026 29d ago | 8-K | $71.98 $76.07 | ▲ +5.68% | ▲ +4.97% | $76.07 (+5.68%) |
Sep 9, 2026 6w ago | 8-K | $81.13 $70.53 | ▼ −13.07% | ▼ −15.26% | $76.07 (−6.24%) |
Aug 19, 2026 9w ago | 8-K | $84.59 $76.78 | ▼ −9.23% | ▼ −9.23% | $76.07 (−10.07%) |
Jul 17, 2026 14w ago | Insider Cluster | $78.02 $83.05 | ▲ +6.45% | ▲ +2.33% | $76.07 (−2.50%) |
Jul 16, 2026 14w ago | Insider Cluster | $78.61 $84.19 | ▲ +7.10% | ▲ +2.65% | $76.07 (−3.23%) |
Jun 29, 2026 17w ago | 8-K | $70.52 $78.25 | ▲ +10.96% | ▲ +11.24% | $76.07 (+7.87%) |
Jun 22, 2026 18w ago | 8-K | $71.72 $78.02 | ▲ +8.78% | ▲ +7.62% | $76.07 (+6.07%) |
Mar 5, 2026 33w ago | 8-K | $64.52 $63.36 | ▼ −1.80% | ▲ +1.99% | $76.07 (+17.90%) |
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