AYI · Acuity Brands, Inc.

Acuity Inc. secured a new five-year, $800 million unsecured revolving credit facility on May 8, 2026, providing enhanced liquidity through May 2031 and replacing its prior facility from June 2022. This agreement, led by JPMorgan Chase Bank, N.A. as administrative agent with other major banks including Bank of America, N.A., Truist Bank, and others as agents, supports ongoing operations and potential growth. Key investor considerations include the unsecured nature, backed by guarantees from material domestic subsidiaries, and flexible multi-currency interest options tied to benchmarks like Term SOFR or EURIBOR plus margins determined by the company's leverage ratio or credit ratings. A quarterly facility fee applies regardless of usage, also leverage- or rating-based. The primary covenant mandates a maximum net leverage ratio of 3.75x (consolidated debt less unrestricted cash over EBITDA), with a temporary step-up to 4.25x for qualifying acquisitions, offering balance sheet flexibility for strategic moves. Standard restrictions limit mergers, substantial asset sales, liens, and subsidiary debt, while events of default enable lender acceleration. This refinancing extends maturity, maintains ample capacity, and aligns covenants with financial health, signaling confidence in Acuity's leverage management amid operational needs.