Business Context and Reporting Period
Stanley Black & Decker, Inc. filed a Form 8-K on June 18, 2026, reporting the entry into new material definitive credit agreements and the termination of a prior agreement. The company is incorporated in Connecticut and trades on the New York Stock Exchange under the symbol SWK.
Key Financial Metrics and Debt Structure
The filing details the establishment of two new credit facilities with a combined total commitment of $3.0 billion. No proceeds were drawn down at closing.
- 364-Day Credit Agreement: A $1.0 billion revolving credit loan available in U.S. Dollars or Euros. Maturity is June 17, 2027, with an option to convert outstanding advances into a term loan repayable within one year of the termination date.
- Five Year Credit Agreement: An amended and restated $2.0 billion revolving credit loan available in U.S. Dollars, Euros, or Pounds Sterling. It includes a sub-limit of $800 million (Euro equivalent) for swing line advances. Maturity is June 18, 2031, with options for one-year extensions.
- Interest Rates: Borrowings bear interest based on Base Rate, Term SOFR, EURIBO, or SONIA plus an applicable margin.
- Covenants: Both agreements require an interest coverage ratio of not less than 3.50 to 1.00. A temporary reduced requirement of 2.50 to 1.00 applies for periods ending on or before the end of the second fiscal quarter of 2026.
Material Changes Versus Prior Period
The company terminated its previous 364-Day Credit Agreement dated June 23, 2025, in connection with the execution of the new 364-Day Credit Agreement. The Five Year Credit Agreement amends and restates the agreement originally dated June 28, 2024.
Outlook, Risks, and Management Commentary
Proceeds from the new facilities are designated solely for general corporate purposes. The agreements contain customary affirmative and negative covenants, including limitations on liens, restrictions on mergers or asset sales, and restrictions on sale-leaseback transactions. Events of default may trigger immediate repayment of all outstanding amounts. The company may be required to prepay borrowings upon a change of control if requested by lenders holding a majority of commitments.
Investor Verification Checklist
- Verify the specific applicable interest rate margins in the full text of Exhibits 10.1 and 10.2.
- Confirm the company's current EBITDA and interest coverage ratio to ensure compliance with the 3.50 to 1.00 covenant requirement.
- Review the definition of "Applicable Adjustment Addbacks" to understand the $250 million cap on EBITDA adjustments for the specified period.
- Monitor the company's liquidity position to assess the likelihood of drawing on the $3.0 billion in available credit.