0001104659-26-060295
SEC filingMohawk Industries entered into a new $1.5 billion unsecured revolving credit facility maturing May 12, 2031, refinancing its prior credit agreement while terminating all existing commitments.
Mohawk Industries refinanced its existing $1.9B-equivalent credit facility from 2019 with a new $1.5B unsecured revolving facility led by JPMorgan, reducing initial commitments but adding substantial accordion capacity up to $2.1B total. This provides greater liquidity flexibility through multi-currency support (USD, AUD, CAD, EUR, GBP), swingline, and L/C sublimits, with a 5-year maturity extendable by up to 10 years. Pricing ties to leverage or ratings, with SOFR-based spreads (75-125 bps) and minimal Base Rate spreads (0-25 bps), plus low commitment fees (5.5-15 bps), signaling strong credit access amid favorable market conditions. The facility terminates the prior Wells Fargo-led agreement, eliminating legacy obligations. Key investor protections include a 3.5x interest coverage covenant—achievable for Mohawk's scale—and standard negatives on liens/debt/changes, with numerous exceptions. Unsecured status and borrower cross-guarantees (domestic/foreign) maintain operational flexibility. No prepayment penalties enhance capital allocation options. Overall, this extends debt maturity profile, diversifies banking relationships, and supports working capital amid cyclical flooring demand.