Loan & DebtMay 5, 2026, 04:28 PM
Modine Amends Credit Agreement for Performance Tech Spin-off
AI Summary
Modine Manufacturing Company and Airedale International Air Conditioning Limited entered into Amendment No. 2 to their Sixth Amended and Restated Credit Agreement on April 30, 2026. This amendment modifies the Credit Agreement to permit the separation, disposition, and spin-off of Modine's Performance Technologies business and allows for the incurrence of related indebtedness by a newly formed subsidiary. The changes include new definitions, revised negative covenants to facilitate the transaction, and provisions for mandatory prepayment of existing loans with proceeds from the new indebtedness.
Key Highlights
- Modine amended its Sixth Amended and Restated Credit Agreement on April 30, 2026.
- Amendment No. 2 permits the spin-off of the Performance Technologies business (PT Transaction).
- Allows for the incurrence of indebtedness by a newly formed subsidiary for the PT Transaction.
- Revises certain negative covenants to permit related investments, payments, and asset transfers.
- Provides for mandatory prepayment of loans with 100% of net proceeds from such indebtedness.