Business Context and Reporting Period
Company: Floor & Decor Holdings, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: June 24, 2026
Event: Refinancing of senior secured debt facilities and termination of prior credit agreements.
Key Financial Metrics and Debt Structure
This filing details the restructuring of the company's debt obligations rather than reporting operational financial performance metrics such as revenue or profit.
| Facility Type | Principal Amount / Commitment | Maturity Date | Administrative Agent |
|---|---|---|---|
| New Senior Secured Term Loan | $200.0 million | June 24, 2033 | Goldman Sachs Bank USA |
| New Senior Secured ABL (Revolving) | $800.0 million | June 24, 2031 | Bank of America, N.A. |
Interest Rates (Margins):
- Term Loan: Adjusted Term SOFR + 2.00% or Alternate Base Rate + 1.00%.
- ABL Facility: Term/Daily SOFR + 1.125%, Base Rate + 0.125%, or Letter of Credit fees ranging from 0.75% to 1.125%.
Prepayment Terms: The Term Loan includes a 1.00% prepayment premium for repricing transactions within 6 months of closing; otherwise, prepayment is permitted without penalty. The ABL Facility allows prepayment at any time without premium or penalty.
Material Changes Versus Prior Period
Refinancing and Termination: On June 24, 2026, the company terminated its existing credit agreements (originally dated September 30, 2016) and replaced them with new facilities. The prior agreements were repaid in full with no early termination penalties incurred.
Extension of Maturity:
- Term Loan: Maturity extended from February 14, 2027, to June 24, 2033 (approx. 6.3 years extension).
- ABL Facility: Maturity extended from August 4, 2027, to June 24, 2031 (approx. 3.8 years extension).
Capacity Adjustments:
- Term Loan: New facility includes an incremental feature allowing increases up to the greater of $530 million or 100% of Consolidated EBITDA, plus additional amounts based on leverage conditions.
- ABL Facility: Includes an accordion feature allowing an increase of up to $200 million.
Guidance, Risks, and Covenants
Covenants: The new facilities impose standard negative covenants, including limitations on:
- Incurrence of additional indebtedness and liens.
- Payment of dividends and restricted payments.
- Mergers, consolidations, and asset dispositions.
- Transactions with affiliates and engagement in unrelated lines of business.
Collateral Structure:
- Term Loan: Secured by a first-priority interest in fixed assets and intellectual property; second-priority interest in current assets.
- ABL Facility: Secured by a first-priority interest in current assets (inventory, accounts receivable); second-priority interest in fixed assets.
Risks and Contingencies: The filing notes that lenders and their affiliates may provide future banking and investment banking services to the Company. The filing does not provide specific forward-looking guidance on revenue or earnings, nor does it disclose unusual items or contingencies beyond the standard debt covenants.
Investor Verification Checklist
- Debt Service Impact: Verify the impact of the new interest rate margins (SOFR + 2.00% for term loans) on future interest expense compared to the prior facility.
- Covenant Compliance: Review the specific financial tests and leverage ratios required under the new agreements to ensure ongoing compliance.
- Incremental Capacity: Assess the likelihood and conditions required to utilize the incremental term loan capacity (up to $530M or 100% EBITDA) and the ABL accordion ($200M).
- Prepayment Premium: Confirm the 6-month window for the 1.00% prepayment premium on the Term Loan to evaluate refinancing flexibility.
- Collateral Priority: Understand the inter-creditor agreement regarding the first and second-priority security interests between the Term Loan and ABL facilities.