Martin Marietta Materials, Inc. MLM has announced significant amendments to its financial agreements, aimed at facilitating the acquisition of Lhoist North America, Inc. On July 10, 2026, the company entered into Amendment No. 1 with JPMorgan Chase Bank, N.A. and other financial institutions, modifying its existing $800 million five-year senior unsecured revolving credit facility. This amendment adjusts the financial covenant to accommodate the acquisition, setting a maximum leverage ratio of 4.75:1.00 for the first three fiscal quarters post-acquisition, 4.25:1.00 for the subsequent three quarters, and 3.75:1.00 thereafter.
Additionally, on July 15, 2026, Martin Marietta Materials entered into a Term Credit Agreement with JPMorgan Chase Bank, N.A. and other lenders. This agreement establishes a three-year senior unsecured term loan facility of $1.5 billion, intended to finance part of the acquisition and cover related expenses. The term facility, which is not subject to amortization, will mature three years from the funding date. Loans under this agreement will bear interest based on either the Term SOFR Rate or the Base Rate, plus a margin determined by a ratings-based pricing grid.
The Term Credit Agreement includes customary covenants and events of default, with a leverage ratio requirement similar to the revolving credit facility. Notably, Martin Marietta Materials can exclude certain acquisition-related debt from the leverage ratio calculation for four quarters, provided the ratio without exclusion does not exceed 4.25:1.00. Furthermore, if no amounts are outstanding under both the revolving facility and the company's accounts receivable securitization facility, consolidated debt may be reduced by up to $500 million in cash and cash equivalents for leverage ratio calculations.
These strategic financial adjustments underscore Martin Marietta Materials' commitment to expanding its operations through the acquisition of Lhoist North America, while maintaining financial stability and flexibility.
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