Fastenal Co. (NASDAQ: FAST) on June 18 entered into a second amended and restated credit agreement with Wells Fargo Bank as administrative agent, renewing its unsecured revolving credit commitment at $835 million and extending the maturity date to June 18, 2031.

The revised credit agreement includes two one-year extension options subject to certain conditions. An uncommitted accordion option was increased from $365 million to $500 million, bringing the possible total commitment to $1.335 billion if fully exercised.

The updated agreement modifies financial covenants by removing the consolidated EBITDA covenant and replacing it with a minimum interest coverage ratio of no less than 3.00 to 1.00 and a maximum consolidated total leverage ratio of no greater than 3.00 to 1.00. The leverage ratio may step up to 3.50 to 1.00 for four fiscal quarters following any qualified acquisition with consideration of at least $750 million.

On the same date, Fastenal amended its existing Master Note Agreement, originally dated July 20, 2016, with Metropolitan Life Insurance Company, NYL Investors LLC, and PGIM, Inc. The amendment reduces the aggregate principal amount of notes that may be outstanding under that agreement from $900 million to $600 million and releases PGIM, Inc. as a purchaser. The issuance period for senior promissory notes under the agreement was extended to June 18, 2031.

The Master Note Agreement amendment applies the same financial covenant changes, removing the consolidated EBITDA covenant and requiring the same interest coverage and leverage ratio thresholds. Both agreements also delete certain negative covenants related to investments and restrictive agreements.