AMETEK secures $7.5 billion in credit facilities for Indicor acquisition

AMETEK Inc. (NYSE: AME) entered into new credit agreements totaling $7.5 billion to finance its acquisition of Indicor Holdings LLC, according to a company filing.

The industrial technology company secured a $3.5 billion revolving credit facility and a $4 billion term loan facility on June 9, 2026. The revolving credit agreement increases AMETEK's previous commitment from $2.3 billion and extends the maturity date to June 9, 2031.

The term loan facility consists of three tranches: $1.625 billion in loans maturing three years from drawdown, $1.625 billion maturing in four years, and $750 million maturing in five years. Funding of the term loans requires completion of the Indicor acquisition.

JPMorgan Chase Bank serves as administrative agent for the revolving facility, while Bank of America acts as administrative agent for the term loan. Co-syndication agents include PNC Bank, Truist Bank, and Wells Fargo Bank.

AMETEK may use up to $1 billion from the revolving facility to pay part of the Indicor acquisition consideration. The term loan proceeds are restricted to the Indicor transaction and must be drawn in a single borrowing on the acquisition closing date.

Both facilities carry interest rates based on Term SOFR or an alternate base rate plus applicable margins tied to the company's credit rating or leverage level. AMETEK can prepay the loans without penalty, excluding potential breakage costs.

The new agreements include financial covenants requiring compliance with either a maximum total net leverage ratio or a minimum interest coverage ratio. The facilities also contain standard restrictions on debt, liens, asset sales, and fundamental changes.

The company terminated $5 billion in bridge financing commitments previously obtained for the Indicor acquisition upon executing the new credit agreements.

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