01—Abstract
Summary
Summary of the 8-K filed August 15, 2025. Cited figures are marked; the original filing is the authoritative source.
Reliance, Inc. (RS) entered into a Term Loan Agreement dated August 14, 2025, with Bank of America N.A. as administrative agent and a syndicate of lenders including Wells Fargo Bank, PNC Bank, U.S. Bank, and JPMorgan Chase Bank as co-syndication agents, documentation agent, and other lenders.
The agreement provides a $400 milliona term loan that was fully drawn at closing and matures on August 14, 2028. The Company used the proceeds to repay its $400 million of senior unsecured notes maturing August 15, 2025. The term loan is unsecured and is not guaranteed by any of the Company's subsidiaries.
Borrowings bear interest at either SOFR or a base rate, plus an applicable margin. The SOFR margin starts at 0.75%b through delivery of the compliance certificate for the quarter ending September 30, 2025, and thereafter fluctuates between SOFR plus 0.75% and SOFR plus 1.25%, based on the Company's Total Net Leverage Ratio. A maximum Total Net Leverage Ratio is the only financial maintenance covenant.
The agreement includes usual and customary representations, affirmative and negative covenants, and events of default, including change of control. The Company may voluntarily prepay the loan in whole or in part without premium or penalty, subject to certain conditions. The filing is a refinancing transaction that replaces maturing senior notes with a bank term loan.
The filing does not state the Company's leverage levels or the reasons for choosing a floating-rate facility beyond the stated terms. The complete agreement is filed as Exhibit 10.1.
02—Key points
Key Highlights
- Entered into a $400 million Term Loan Agreement dated August 14, 2025, fully drawn at closing.
- Loan matures August 14, 2028, and proceeds repaid $400 million of senior unsecured notes due August 15, 2025.
- Facility is unsecured and not guaranteed by any subsidiaries.
- Interest is priced at SOFR plus 0.75% initially, then ranges from SOFR plus 0.75% to SOFR plus 1.25% based on Total Net Leverage Ratio, or base rate plus up to 0.250%.
- Maximum Total Net Leverage Ratio is the only financial maintenance covenant.
- Loan may be voluntarily prepaid in whole or in part without premium or penalty, subject to certain conditions.
- Bank of America N.A. serves as administrative agent; Wells Fargo, PNC, U.S. Bank, and JPMorgan Chase are syndication and documentation agents.
03—Questions
Frequently Asked Questions
What is the principal amount and maturity of the new term loan?
The Term Loan Agreement provides for a $400 million term loan, fully drawn at closing, with a maturity date of August 14, 2028.
What was the loan used for?
Funds were used to repay the Company's $400 million of senior unsecured notes maturing August 15, 2025.
How is interest on the loan determined?
Borrowings bear interest at SOFR or a base rate, plus an applicable margin. The SOFR margin is 0.75% initially, through delivery of the compliance certificate for the quarter ending September 30, 2025. Thereafter it fluctuates between 0.75% and 1.25% based on the Total Net Leverage Ratio.
Is the term loan secured or guaranteed?
No. The Term Loan Agreement is unsecured and is not guaranteed by any of the Company's subsidiaries.
Can the Company repay the loan early?
Yes. The Company may voluntarily prepay the term loan, in whole or in part, without premium or penalty, subject to certain conditions.
04—Continue