This is a routine refinancing that modestly reduces total committed capacity. Monitor the company's next quarterly filing for any material change in leverage or liquidity needs. The step-up in the Interest Coverage Ratio covenant to 3.50x after Q2 2026 is a key threshold to watch.
Price Chart
Executive Summary
Stanley Black & Decker entered into two new credit agreements on June 18, 2026: a $2.0B five-year revolving credit facility (maturing June 2031, extendable) replacing a $2.25B facility, and a new $1.0B 364-day credit facility (maturing June 2027) replacing a $1.25B facility. The combined $3.0B in committed liquidity represents a $500M reduction from the prior $3.5B total, but the company secured an additional $800M swingline sublimit under the five-year facility. This is a routine refinancing that modestly reduces total committed capacity while extending maturities, with no material change to the company's credit profile.
Key Financial Metrics
Key Facts
- Entered into a $2.0B amended and restated five-year credit agreement (maturing June 18, 2031, with two one-year extension options), replacing a $2.25B facility dated June 28, 2024.
- Entered into a new $1.0B 364-day credit agreement (maturing June 17, 2027), replacing a $1.25B 364-day facility dated June 23, 2025.
- Combined committed capacity reduced by $500M from $3.5B to $3.0B.
- Five-year facility includes an $800M swingline sublimit for euro-denominated advances.
- Interest rates are based on Term SOFR, EURIBOR, or SONIA plus margins tied to credit ratings (ranging from 0.875% to 1.375% for Term SOFR/EURIBOR).
- Commitment fee rates range from 0.070% to 0.175% on the five-year facility and 0.040% to 0.150% on the 364-day facility, based on credit ratings.
- Financial covenant requires Interest Coverage Ratio of at least 3.50x (stepping up from 2.50x for periods ending on or before Q2 2026).
- Proceeds to be used for general corporate purposes.
Financial Impact
Total committed liquidity reduced by $500M (from $3.5B to $3.0B). No amounts drawn or fees disclosed beyond standard commitment fees.
Risk Factors
- Reduction in total committed capacity from $3.5B to $3.0B could signal tighter liquidity management.
- Interest Coverage Ratio covenant steps up to 3.50x after Q2 2026, which may constrain financial flexibility if earnings decline.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 2 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-281077 |
| Document: d49687dex101.htm | 0001193125-26-281077 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 4, 2026 27d ago | 8-K | $97.36 $88.89 | ▼ −8.70% | ▼ −7.49% | $91.10 (−6.43%) |
Aug 17, 2026 6w ago | Court Ruling | $99.59 $98.51 | ▼ −1.08% | ▲ +0.11% | $91.10 (−8.52%) |
Jun 24, 2026 14w ago | 8-K | $92.31 $91.34 | ▼ −1.05% | ▼ −2.61% | $91.10 (−1.31%) |
Apr 20, 2026 23w ago | 8-K | $75.06 $79.81 | ▲ +6.33% | ▲ +5.42% | $91.10 (+21.38%) |
Apr 6, 2026 25w ago | 8-K | $67.96 $72.28 | ▲ +6.36% | ▲ +2.22% | $91.10 (+34.06%) |
Mar 6, 2026 30w ago | DEFA14A | $76.09 $70.10 | ▼ −7.87% | ▼ −6.34% | $91.10 (+19.73%) |
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