Mueller Industries Inc.
03/30/2026 | Press release | Distributed by Public on 03/30/2026 09:47
Material Agreement, Financial Obligation (Form 8-K)
| Item 1.01 | Entry into a Material Definitive Agreement |
On March 27, 2026, Mueller Industries, Inc. (the "Company") entered into a Credit Agreement (the "Credit Agreement") among the Company (as borrower) and Bank of America, N.A. ("Bank of America") (as administrative agent, lender, swing line lender and letter of credit issuer). The Credit Agreement replaces the Company's prior credit agreement among the Company (as borrower), Bank of America (as administrative agent) and certain lenders (including Bank of America) parties thereto, dated as of March 31, 2021 (as amended, restated and/or supplemented from time to time).
The Credit Agreement provides for an unsecured $100 million revolving credit facility, which matures March 27, 2031. Funds borrowed under the Credit Agreement may be used by the Company for working capital purposes and other general corporate purposes. In addition, the Credit Agreement provides a sublimit of $50 million for the issuance of letters of credit, a sublimit of $35 million for loans and letters of credit made in certain foreign currencies, and a swing line sublimit of $25 million. Outstanding letters of credit and foreign currency loans reduce borrowing availability under the Credit Agreement on a dollar-for-dollar basis.
Loans under the Credit Agreement bear interest, at the Company's option, at a rate per annum equal to (i) the Benchmark Rate (the "Benchmark Rate"), which is determined by the underlying currency of the Credit Extension (Term SOFR for those denominated in U.S. Dollars, Term CORRA for those denominated in Canadian Dollars and such other designated rate with respect to agreed currencies) for interest periods (at the Company's option) of one, three, six or twelve months, or (ii) the Base Rate ("Base Rate") which is equal to the greatest of (a) the overnight federal funds rate plus 0.50 percent, (b) Bank of America's "prime rate" or (c) the Benchmark Rate (with respect to one-month Term SOFR) plus 1.00 percent, provided that such fluctuating rate shall not be less than zero percent, in each case plus an applicable margin. Applicable margin is based on the Company's consolidated funded indebtedness to capitalization ratio and can range from 112.5 to 162.5 basis points per annum over the Benchmark Rate and from 12.5 to 62.5 basis points over the Base Rate. Additionally, a commitment fee is payable quarterly on the actual daily unused amount of the commitments and varies from 15.0 to 30.0 basis points per annum based upon the Company's consolidated funded indebtedness to capitalization ratio. Certain fees are also payable in connection with letters of credit, including an annual fee on each letter of credit equal to the applicable margin for loans made at the Benchmark Rate times the face amount of such letter of credit.
Borrowings under the Credit Agreement require the Company, among other things, to meet certain minimum financial ratios and to comply with customary affirmative and negative covenants.
The Company's obligations under the Credit Agreement are guaranteed on a joint and several basis by certain of the Company's domestic wholly-owned subsidiaries.
There is no material relationship between the Company and any of the parties to the Credit Agreement other than in respect to the Credit Agreement and other routine commercial banking services.
The description of the Credit Agreement contained herein is qualified in its entirety by reference to the Credit Agreement, a copy of which is attached hereto as Exhibit 10.1 and is incorporated therein by reference.
| Item 2.03 | Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant | ||||
The information described above under Item 1.01 with respect to the Credit Agreement is hereby incorporated by reference.
Mueller Industries Inc. published this content on March 30, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on March 30, 2026 at 15:47 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]