Kennametal Raises $700M, Upsizes Revolver by $200M and Extends Debt to 2036
KMT•Kennametal raised $700 million in near-term liquidity via a new three-year term loan and expanded its revolving credit facility by $200 million, while refinancing $300 million with 5.8% ten-year notes maturing in 2036. These transactions extend debt maturities to 2036, maintain an investment-grade credit profile and underpin working capital for tungsten demand growth.
1. Financing Transactions Overview
On May 28, 2026, Kennametal secured a three-year $500 million delayed draw term loan at SOFR plus 112.5 basis points, with up to three draws through September 30, 2026, and simultaneously expanded its revolving credit facility by $200 million to $850 million, enhancing near-term liquidity by $700 million.
2. Bond Refinancing Details
The Company launched a tender offer for its $300 million 4.625% senior notes due 2028 and issued $300 million of new 5.800% ten-year senior unsecured notes maturing in 2036; the tender and issuance completed on May 29, 2026, and remaining 2028 notes will be redeemed on July 1.
3. Credit Profile and Working Capital Support
These transactions extend Kennametal’s debt maturity profile to 2036, preserve its investment-grade credit ratings and underpin borrowing capacity to fund working capital requirements tied to tungsten market demand and anticipated share growth.
