2026-03-20 20:21:38
Fortive Corporation Enters $2 Billion Credit Agreement with Bank of America
Expected Stock impact: Slightly Positive
On March 17, 2026, Fortive Corporation, a Delaware-based company, entered into a third amended and restated credit agreement with Bank of America, N.A. This agreement provides for a five-year revolving credit facility amounting to $2 billion, which includes a multicurrency borrowing feature. Notably, on the closing date, Fortive did not borrow any funds under this new credit agreement. The new agreement extends the availability period of the revolving credit facility from October 18, 2027, to March 17, 2031, with options for up to two one-year extensions upon request and lender consent. Additionally, the agreement allows for an increase option permitting Fortive to request up to an additional $1 billion in principal amount from lenders, subject to certain conditions. The credit agreement stipulates that borrowings will bear interest based on the company's long-term debt credit rating, with a margin between 69 and 110 basis points for U.S. Dollar borrowings. The company is also required to maintain a Consolidated Net Leverage Ratio of 3.75 to 1.00 or less, which can be increased to 4.25 to 1.00 following significant acquisitions. This strategic move is expected to enhance Fortive's liquidity position and provide flexibility for future growth initiatives.
