MMM · 3M Company

On April 30, 2026, 3M Company and its indirect subsidiary Fire Safety Platform Holdco, Inc. (the Borrower) entered into a Credit Agreement with Morgan Stanley Senior Funding, Inc. as administrative agent and lead arranger, alongside co-syndication agents Citibank and U.S. Bank, and various lenders. This establishes a $1.43 billion term loan facility available on the Closing Date and a $200 million revolving credit facility, both maturing 364 days thereafter with a potential 12-month extension upon payment of a fee and satisfaction of conditions. The facilities bear interest at the Borrower's election of Term SOFR plus 0.875% or Base Rate (floored at 1.00%) plus 0% margin, reflecting favorable pricing likely due to 3M's strong credit profile. Critically, 3M provides an unconditional guarantee, rendering the obligations senior unsecured liabilities of both the Company and Borrower. Proceeds fund the Borrower's acquisition of Madison Safety & Flow Holdings LLC and subsidiaries from Madison Industries, signaling 3M's strategic expansion in fire safety. Key protections include a financial covenant mandating a 3.0x EBITDA to interest ratio on consolidated Funded Debt, alongside negative covenants limiting liens and fundamental changes. Fees include customary commitments on undrawn amounts and duration fees post-18 months. Lenders' affiliates may provide ancillary services to 3M. The full Credit Agreement will be exhibited in the Q2 2026 10-Q. This financing underscores 3M's commitment to the deal while layering leverage at the subsidiary level with parent support, balancing acquisition funding needs with covenant discipline.