Business Context and Reporting Period
Oshkosh Corporation (OSK) filed a Form 8-K Current Report on March 16, 2026. The filing details the entry into material definitive agreements regarding the company's credit facilities.
Key Financial Metrics and Debt Structure
The filing focuses on debt restructuring and liquidity facilities rather than operational performance metrics like revenue or profit.
- Revolving Credit Facility: A new Fourth Amended and Restated Credit Agreement establishes an unsecured revolving credit facility with an initial maximum aggregate amount of $1.6 billion, maturing in March 2031.
- Expansion Option: The company may increase the aggregate amount of credit facilities by up to $800 million subject to lender consent and conditions.
- Term Loan Facility: An amendment was made to an existing $500 million unsecured term loan facility (originally dated March 31, 2025) to conform terms with the new revolving agreement.
- Interest Rates: Borrowings bear variable interest rates based on Term SOFR, Base Rate, or foreign currency equivalents (e.g., SONIA, EURIBOR) plus a specified margin.
- Fees: Unused commitment fees range from 0.080% to 0.200% per annum. Letter of credit fees range from 0.4375% to 1.5000% per annum.
Material Changes Versus Prior Period
The primary material change is the replacement of the Third Amended and Restated Credit Agreement (dated March 23, 2022), which provided for a $1.55 billion facility, with the new $1.6 billion facility extending the maturity to 2031. Additionally, the existing term loan agreement was amended to align its terms with the new revolving credit agreement.
Covenants, Risks, and Contingencies
The new Credit Agreement imposes specific financial covenants and restrictions:
- Leverage Ratio: The company must maintain a maximum leverage ratio of 3.75 to 1.00. This ratio is defined as consolidated indebtedness (less unrestricted cash in excess of $100 million) divided by consolidated net income before interest, taxes, depreciation, amortization, and non-cash charges.
- Temporary Increase: The maximum leverage ratio may be temporarily increased to 4.25 to 1.00 in connection with certain material acquisitions.
- Restrictions: Covenants restrict consolidations, mergers, creation of liens, incurring additional subsidiary indebtedness, acquisitions, and the disposition of substantially all assets.
- Events of Default: Standard events of default apply. Upon acceleration or default, interest rates on revolving loans increase by 2.0% per annum over the applicable rate.
Missing Data: The filing text does not provide current values for revenue, profit, cash flow, operating margins, or total outstanding debt balances as of the filing date.
Investor Verification Checklist
- Verify the current leverage ratio to ensure compliance with the 3.75 to 1.00 covenant.
- Review the specific interest rate margins applicable to the company's current credit rating.
- Confirm the amount of unrestricted cash and cash equivalents to calculate the net debt figure accurately.
- Assess the impact of the 2031 maturity date on the company's long-term liquidity planning.
- Examine the full text of Exhibits 4.1 and 4.2 for detailed definitions of "consolidated indebtedness" and "net income" adjustments.