Business Context and Reporting Period
Company: Knife River Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: May 15, 2026
Event: Entry into a Material Definitive Agreement (Second Amendment to Credit Agreement).
Key Financial Metrics
This filing reports on debt restructuring and financing activities rather than operational performance metrics such as revenue or profit.
- New Debt Issuance: $400 million increase in Term B loans.
- Total Term B Loans Outstanding: $895 million (post-amendment).
- Interest Rate Margin Reduction: 0.25% reduction on existing Term B loans.
- New Interest Rates:
- SOFR loans: 1.75% per annum.
- Alternate base rate loans: 0.75% per annum.
- Administrative Agent: JPMorgan Chase Bank, N.A.
Material Changes Versus Prior Period
The filing details a modification to the Credit Agreement originally dated May 31, 2023. The primary material changes include:
- Expansion of the Term B loan facility by $400 million.
- Reduction in the cost of borrowing via a 0.25% margin decrease.
- Refinancing of existing Term B loans and repayment of borrowings under the Revolving Credit Facility.
Guidance, Outlook, and Management Commentary
Use of Proceeds: Management intends to utilize the proceeds from the new 2026 Tranche B Term Loans to:
- Refinance Existing Term B Loans.
- Repay borrowings under the Revolving Credit Facility.
- Fund working capital and general corporate purposes.
Risks and Contingencies: The filing notes that the description of the Second Amendment is qualified in its entirety by reference to the full text of the Credit Agreement (Exhibit 10.1). No specific new risks or contingencies are detailed in the summary text provided.
Investor Verification Checklist
- Verify the full terms of the Second Amendment in Exhibit 10.1, specifically regarding covenants and prepayment penalties.
- Confirm the exact amount of Revolving Credit Facility debt being repaid with the new proceeds.
- Review the impact of the 0.25% margin reduction on the company's overall interest expense forecast.
- Check subsequent filings for any changes in liquidity ratios resulting from the refinancing.