AAON, Inc. Increases Revolving Commitments to $500M

By Hao Liu • Saturday, May 31 11:08 • Permanent Link

AAON, Inc. and its affiliated companies have announced a fifth amendment to their amended and restated loan agreement as of May 29, 2025. The amendment includes an increase in the total revolving commitments from $230,000,000.00 to $500,000,000.00. This increase will be used to refinance and pay off in full the principal amount of all outstanding term loans with the proceeds of revolving loans. Additionally, the amendment extends the revolving commitment termination date from May 27, 2027 to May 27, 2030.

The amendment also introduces new lenders, with Bank of America, N.A. and Associated Bank, N.A. joining as the "New Lenders." The existing lenders and the new lenders have agreed to provide the revolving commitment increase, subject to the terms and conditions set forth in the amendment.

Furthermore, the amendment includes the reallocation of revolving commitments and revolving credit exposures among the existing lenders and new lenders, ensuring that each lender's commitment reflects the changes specified in the amendment.

The effectiveness of the fifth amendment is subject to several conditions, including the receipt of duly executed counterparts of the amendment by the borrowers, existing lenders, new lenders, and the administrative agent. Additionally, the borrowers must be in compliance with certain covenants and provide certifications and documentation as required by the lenders.

Upon the effectiveness of the amendment, all references in the loan agreement will be construed to mean the amended agreement, and the existing loan agreement and all other related documents will remain in full force and effect.

The fifth amendment to the loan agreement is governed by the law of the State of Oklahoma and may be executed in multiple counterparts, with delivery by electronic means deemed as effective as manual delivery.

The amendment also contains representations and warranties by the borrowers and other loan parties to assure the lenders and administrative agent regarding their organizational powers, authorization of the amendment, compliance with laws, and absence of defaults or violations.

The market has reacted to these announcements by moving the company's shares 0.15% to a price of $96.29. Check out the company's full 8-K submission here.

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