Loan & DebtMay 6, 2026, 08:07 AM
3M Subsidiary Secures $1.63B Credit for Madison Safety & Flow Acquisition
AI Summary
3M Company's indirect subsidiary, Fire Safety Platform Holdco, Inc., entered into a Credit Agreement on April 30, 2026, securing a $1.43 billion term loan facility and a $200 million revolving credit facility. These facilities, totaling $1.63 billion, are primarily for financing the acquisition of Madison Safety & Flow Holdings LLC from Madison Industries. 3M Company has unconditionally guaranteed the liabilities of its subsidiary under these agreements, which are senior unsecured liabilities and include a financial covenant requiring a minimum EBITDA to Interest Ratio.
Key Highlights
- 3M's indirect subsidiary, Fire Safety Platform Holdco, Inc., secured a $1.43 billion term loan facility.
- The subsidiary also obtained a $200 million revolving credit facility, totaling $1.63 billion in new debt.
- The facilities are intended to finance the acquisition of Madison Safety & Flow Holdings LLC from Madison Industries.
- 3M Company has unconditionally guaranteed the liabilities of the Borrower under these facilities.
- Loans mature 364 days after the Closing Date, with an option for a 12-month extension.
- Interest rates are Term SOFR + 0.875% or Base Rate + 0.00%.
- The Credit Agreement includes a financial covenant requiring 3M to maintain an EBITDA to Interest Ratio of at least 3.0 to 1.0.