Modine Manufacturing Company (NYSE:MOD), a $4.8 billion market cap industrial manufacturer with annual revenues of $2.6 billion, announced Wednesday it has entered into a Sixth Amended and Restated Credit Agreement, replacing its previous credit facility. According to InvestingPro data, the company maintains a moderate debt level with a debt-to-equity ratio of 0.49, positioning it well for this refinancing. The new agreement, effective July 10, 2025, establishes a senior secured revolving credit facility of up to $400 million and a $200 million term loan facility. Both facilities mature on July 10, 2030.

Under the agreement, the term loan is payable in quarterly installments of 1.25% of the original principal amount, starting December 31, 2025, with any remaining balance due at maturity. The revolving credit facility provides ongoing borrowing capacity through the five-year term.

The amended credit agreement updates the financial covenants for Modine Manufacturing, including a maximum net leverage ratio of 3.50 to 1.00 and a minimum interest expense coverage ratio of 3.00 to 1.00. The company’s strong financial position is reflected in its current ratio of 1.78, indicating healthy liquidity, and an overall "GOOD" financial health score from InvestingPro’s comprehensive analysis. The company may temporarily increase the net leverage ratio to up to 4.00 to 1.00 in connection with certain material acquisitions, but this option is limited to three times during any five-year term.

Additional provisions allow for certain restructuring charges not to exceed $30 million in any fiscal year or $90 million in aggregate, plus a separate allowance for charges tied to the exit of the automotive business within the Performance Technologies segment, capped at $25 million per year or $55 million in total. The agreement also permits the disposition of the automotive business under specified conditions. Compared to the previous agreement, these restructuring charge allowances have increased.