Fortive Corp 8-K

What Happened

• Fortive Corporation announced it entered into a third amended and restated credit agreement on March 17, 2026, providing a five-year revolving credit facility of up to $2.0 billion with Bank of America as administrative agent and a syndicate of lenders. The Company did not borrow any funds on the closing date. The new agreement restates and replaces the prior credit agreement dated October 18, 2022 and extends the facility availability to March 17, 2031 (with up to two one-year extension options subject to lender consent).

Key Details

• Commitment: $2.0 billion revolving credit facility, multicurrency borrowing feature; option to request up to an additional $1.0 billion (subject to lender participation and conditions).
• Maturity/Extensions: Maturity date March 17, 2031, with up to two one-year extension options (lender consent required).
• Pricing/Fees: U.S. Term SOFR loans carry a margin of 69–110 basis points over Term SOFR; base-rate loans carry a margin of 0–10 bps above the applicable base rate. Facility fee of 6–15 bps per annum on commitments. Rates and fees vary based on Fortive’s long-term debt credit rating.
• Covenants: Requires Consolidated Net Leverage Ratio ≤ 3.75x (increases to 4.25x for four quarters after any acquisition with purchase price > $250M). Leverage testing begins for the quarter ending March 31, 2026.
• Other: Borrowings are prepayable and revolvable; obligations are unsecured; customary events of default, covenants and lender remedies apply. Fortive guarantees subsidiary obligations if a subsidiary becomes a co‑borrower.

Why It Matters

• This agreement secures multi-year, flexible liquidity (up to $2.0B, with a potential $1.0B increase) on market-based pricing, giving Fortive ready access to capital for operations, refinancing or acquisitions. The covenant and pricing are tied to Fortive’s credit rating, so changes in rating could affect borrowing costs and fees. Investors should note the leverage covenant and the temporary covenant relief for large acquisitions, as these affect Fortive’s ability to take on new debt and pursue strategic deals.