Twin Disc secures $90M credit facility with Bank of Montreal and JPMorgan

Twin Disc, Incorporated (NASDAQ: TWIN) entered into a new credit agreement on June 30, 2026, replacing a prior agreement dated February 14, 2025 with Bank of Montreal.

Under the new Credit Agreement, Bank of Montreal and JPMorgan Chase Bank, N.A. provided term loans totaling $30,000,000 to the company. The term loans mature on June 30, 2031, with required quarterly principal installments of $375,000, rising to $562,500 beginning around September 2028 and $750,000 beginning around September 2030.

The agreement also provides a revolving credit facility of up to $60,000,000, available through June 30, 2031. The revolving facility includes a $5,000,000 sublimit for swing loans and a $4,000,000 sublimit for letters of credit. Kobelt Manufacturing Co. Ltd. serves as guarantor under the agreement.

Interest rates are tied to SOFR, the EURIBO Rate, or the Canadian Overnight Repo Rate Average, with applicable margins ranging from 1.50% to 3.00% depending on the company's total funded debt to EBITDA ratio. The term loan has been designated as a SOFR loan.

Borrowings are secured by substantially all personal property of Twin Disc and Kobelt, including accounts receivable, inventory, machinery, equipment, and intellectual property. The company also pledged 65% of its equity interests in certain foreign subsidiaries.

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