nVent Electric plc (NVT) has entered into a new Term Loan Agreement to secure a $600.0 million senior unsecured term loan facility. The proceeds are intended to finance a portion of the previously announced acquisition of Maverick Power, LLC for $1.75 billion. The company also amended its existing credit agreement to facilitate the use of a $250.0 million revolving credit sublimit for the acquisition.
Key Details
- Financing Agreement: On September 17, 2026, nVent and its subsidiaries entered into a Term Loan Agreement providing a $600.0 million senior unsecured term loan facility to partially fund the acquisition of Maverick Power.
- Acquisition Background: The financing is related to the Membership Interest Purchase Agreement from August 21, 2026, for nVent's subsidiary to acquire Maverick Power for a purchase price of $1.75 billion.
- Loan Terms: The term loan facility will mature on the third anniversary of the funding date and will bear interest at a rate based on SOFR or a base rate, plus an applicable margin tied to nVent's net leverage ratio or public debt rating.
- Amended Credit Facility: The company also amended its existing credit agreement to add a $250.0 million sublimit to its revolving credit facility, which can be used to finance a portion of the acquisition.
- Financial Covenants: The new Term Loan Facility contains financial covenants, including a maximum net leverage ratio of 3.75 to 1.00 and a minimum interest coverage ratio of 3.00 to 1.00.