Business Context and Reporting Period
Company: GREIF, INC.
Filing Type: Form 8-K (Current Report)
Date of Report: March 5, 2026
Event Date: February 27, 2026
Context: The Company entered into new material definitive credit agreements to refinance its existing debt structure and fund ongoing operations.
Key Financial Metrics and Debt Structure
The filing details the establishment of two new credit facilities replacing prior agreements. No revenue, profit, or cash flow metrics are provided in this specific filing.
- New Credit Agreement (JPMorgan):
- Revolving Facility: $800.0 million total ($725.0 million multicurrency + $75.0 million facility).
- Term Loan A-1: $100.0 million.
- Maturity: February 27, 2031.
- Interest Basis: SOFR, EURIBOR, or Base Rate plus a margin based on leverage ratio.
- New FCS Credit Agreement (CoBank):
- Term Loan Facility: $400.0 million.
- Maturity: February 27, 2031.
- Interest Basis: SOFR or Base Rate plus a margin based on leverage ratio.
- Financial Covenants:
- Leverage Ratio: Maximum 4.00 to 1.00 (Total Consolidated Indebtedness less unrestricted cash / Consolidated EBITDA).
- Interest Coverage Ratio: Minimum 3.00 to 1.00 (Consolidated EBITDA / Consolidated Interest Expense).
Material Changes Versus Prior Period
The Company executed a full refinancing of its debt obligations on February 27, 2026.
- Termination of Prior Agreements: The "Prior Credit Agreement" (originally entered March 1, 2022) and the "Prior FCS Credit Agreement" (originally entered May 17, 2023) were repaid in full and terminated.
- Refinancing Purpose: Borrowings under the new agreements were used to repay the prior agreements, fund working capital, capital expenditures, general corporate purposes, and potential acquisitions.
- Collateral Structure: Both new agreements are secured by first-priority security interests in substantially all personal property and pledges of capital stock of subsidiaries. Collateral may be released if the Company achieves an investment-grade rating from at least two major rating agencies.
Outlook, Risks, and Unusual Items
Management Commentary and Features:
- Sustainability Component: The New Credit Agreement includes a mechanism where the interest margin can decrease if specific sustainability performance metrics are achieved, or increase if achievement declines.
- Incremental Capacity: The Company has options to increase borrowing capacity based on EBITDA levels, voluntary prepayments, and maintaining a pro forma secured leverage ratio of 3.00 to 1.00 or less.
- Restrictive Covenants: The agreements limit the ability to incur additional indebtedness, pay dividends, redeem stock, make certain investments, or sell assets without lender consent.
Risks and Contingencies:
- Events of Default: Include nonpayment, breach of covenants, defaults on other indebtedness, and bankruptcy/insolvency.
- Covenant Step-Up: The leverage ratio covenant may increase by 0.50 upon the consummation of certain specified acquisitions.
Investor Verification Checklist
- Verify the exact amount of debt refinanced and any associated prepayment penalties or fees not explicitly detailed in the summary.
- Confirm the Company's current leverage ratio and interest coverage ratio to assess immediate compliance with the new 4.00x and 3.00x covenants.
- Review the specific "sustainability performance metrics" defined in the full credit agreement to understand the potential for interest rate reduction.
- Assess the impact of the "covenant step-up" provision on future acquisition flexibility.
- Check the Company's current credit rating status to determine if collateral release is imminent.