SMITH A O CORP (AOS): debt financing — A. O. Smith closes $470M acquisition of Leonard Valve; funds via new term loan

SMITH A O CORP

Acquired LVC Holdco LLC (Leonard Valve) for $470M all-cash; valued at ~$412M after estimated tax benefits.
Funded by $470M unsecured term loan under credit agreement maturing Jan 5, 2029, drawn in full on Jan 5, 2026.
Term loan bears variable rate at Term SOFR + 0.875%-1.375% or Base Rate + 0%-0.375%, based on leverage ratio.
Deal expands A. O. Smith's water management market, digital expertise, and commercial/institutional product offering.
Leonard Valve (founded 1911) provides thermostatic mixing valves, boiler controls for hospitals, schools, industrial facilities.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

SMITH A O CORP incurred term loan of $470 million with Bank of America, N.A. (as administrative agent) at Term SOFR plus an applicable margin ranging from 0.875% to 1.375% or Base Rate p maturing January 5, 2029.

Instrument: term loan
Principal: $470 million
Counterparty: Bank of America, N.A. (as administrative agent)
Rate: Term SOFR plus an applicable margin ranging from 0.875% to 1.375% or Base Rate p
Maturity: January 5, 2029
Event: incurrence

Exact text from the filing

On January 5, 2026, A. O. Smith Corporation (the “Company”) entered into a Credit Agreement (the “Credit Agreement”) among the Company, the various lenders party thereto, and Bank of America, N.A., as administrative agent (the “Agent”). The Credit Agreement provided for an unsecured term loan in the amount of $470 million that matures on January 5, 2029.

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Source: SEC EDGAR

accession 0000091142-26-000003

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