01—Abstract
Summary
Summary of the 8-K filed March 26, 2026. Cited figures are marked; the original filing is the authoritative source.
On March 20, 2026, Masco Corporation entered into a new Credit Agreement among Masco Corporation and Masco Europe S.à r.l., as borrowers, with JPMorgan Chase Bank, N.A. and J.P.
Morgan SE as administrative agent. The agreement provides U.S. $1 billiona in unsecured revolving credit commitments available in U.S. dollars, European euros, British Pounds Sterling, Canadian dollars and certain other currencies, subject to a foreign currency sublimit of U.S. $500 million equivalent, and includes up to U.S. $25 million in letters of credit. The Company may request an increase in aggregate commitments of up to U.S. $500 million.
The New Credit Agreement refinanced and replaced in full the Company's prior 2022 Credit Agreement dated April 26, 2022, which had the same U.S. $1 billionb of revolving commitments and was terminated in connection with the new facility. Initial borrowings on March 20, 2026 were used to repay in full outstanding revolving loans under the 2022 Credit Agreement and to pay related fees and expenses. Future borrowings are available for general corporate purposes, including acquisitions and working capital.
The facility bears interest at Adjusted Term SOFR or other applicable floating reference rates plus a margin tied to the Company's corporate credit ratings, or at alternate base rate loans for certain U.S. dollar and Canadian dollar borrowings. Financial covenants require a maximum net consolidated debt to Consolidated EBITDA leverage ratio of 4.00 to 1.00 and a minimum Consolidated EBITDA to interest expense coverage ratio of 2.50 to 1.00, tested each fiscal quarter. The agreement matures March 20, 2031, with the possibility of up to two one-year extensions at the Company's request, subject to lender consent.
02—Key points
Key Highlights
- New $1 billion unsecured revolving credit facility entered March 20, 2026, with JPMorgan Chase Bank, N.A. and J.P. Morgan SE as administrative agent
- Facility replaces in full the prior 2022 Credit Agreement, which was terminated, with borrowings used to repay outstanding 2022 revolving loans and pay related fees and expenses
- Multi-currency availability in U.S. dollars, euros, British Pounds Sterling, Canadian dollars and other currencies, with a U.S. $500 million equivalent foreign currency sublimit
- Accordion feature allows an increase in aggregate commitments of up to U.S. $500 million, subject to customary terms
- Financial covenants require maximum leverage of 4.00 to 1.00 (net consolidated debt to Consolidated EBITDA) and minimum interest coverage of 2.50 to 1.00
- Maturity set for March 20, 2031, extendable by one year up to two times at the Company's request with lender consent
- Proceeds available for general corporate purposes, including acquisitions and working capital
03—Questions
Frequently Asked Questions
What is the size and structure of Masco's new credit facility?
The New Credit Agreement provides U.S. $1 billion in unsecured revolving credit commitments, with a foreign currency sublimit of U.S. $500 million equivalent and up to U.S. $25 million in letters of credit. The Company may request up to U.S. $500 million in additional commitments.
Why did Masco enter into the new credit agreement?
The new agreement refinanced and replaced in full the prior 2022 Credit Agreement, which had the same $1 billion of revolving commitments. Initial borrowings repaid outstanding revolving loans under the 2022 agreement and covered related fees and expenses.
What financial covenants apply to the facility?
At the end of each fiscal quarter, Masco must maintain a maximum leverage ratio of total net consolidated debt to Consolidated EBITDA of 4.00 to 1.00 and a minimum interest coverage ratio of Consolidated EBITDA to consolidated interest expense of 2.50 to 1.00, as calculated under the agreement.
How is interest on borrowings under the facility determined?
Revolving loans generally bear interest at Adjusted Term SOFR or other applicable floating reference rates plus an applicable margin based on the Company's corporate credit ratings. Certain U.S. dollar and Canadian dollar loans may instead bear interest at the Alternate Base Rate or Canadian Prime rate plus a ratings-based margin.
When does the facility mature and can it be extended?
The agreement matures on March 20, 2031. At the Company's request, which may be made no more than two times, the maturity may be extended by one additional year, subject to customary terms and consent from lenders holding at least a majority of the commitments and outstanding credit exposure.
04—Continue