PITTSBURGH - Kennametal Inc. (NYSE:KMT) announced a series of financing transactions that raised $700 million in additional liquidity through a new term loan and expansion of its revolving credit facility.
The company entered into a 3-year $500 million delayed draw term loan with an interest rate of SOFR plus 112.5 basis points. The term loan allows for up to three draws through September 30, 2026, and can be prepaid at any time.
Kennametal also expanded its revolving credit facility by $200 million to $850 million using an existing accordion feature, with no changes to existing terms, pricing, covenants or maturity.
The additional liquidity supports tungsten-related working capital needs. The company also completed a $300 million offering of 5.800% senior unsecured notes maturing in 2036.
Kennametal completed a cash tender offer for $300 million of 4.625% senior notes due in 2028. Any remaining 2028 notes will be redeemed on July 1, 2026.
"These transactions position us to fund near-term working capital requirements while maintaining balance sheet discipline," said Sanjay Chowbey, President and CEO.
Kennametal generated $2 billion in revenues in fiscal 2025 and employs approximately 8,100 people.
