CARTHAGE, MO - Diversified manufacturer Leggett & Platt (NYSE:LEG), known for its engineering components and various products, has amended its revolving credit agreement to enhance financial flexibility. The company has increased its leverage ratio from 3.5x to 4.0x trailing 12-month adjusted EBITDA, effective through June 30, 2025.
After this period, the ratio will return to 3.5x on September 30, 2025, and remain there until the maturity of the facility on September 30, 2026.
President and CEO Mitch Dolloff stated that this move is indicative of the company's dedication to maintaining financial strength, particularly in light of current soft demand in residential markets. He expressed confidence that the revised credit terms would provide sufficient liquidity and flexibility for the company's operations.
Dolloff also mentioned that the company's leadership is re-evaluating capital allocation, including dividends, to ensure financial stability while pursuing long-term success through various operational initiatives.
Leggett & Platt, with a history spanning 141 years, is a major player in the supply of bedding components, automotive seating systems, furniture components, and other engineered products. The company's recent financial maneuver is aimed at reinforcing its position during a period of weakened demand.
Further information about the specifics of the credit agreement amendment will be disclosed in a Form 8-K filing with the Securities and Exchange Commission.
This strategic financial decision reflects Leggett & Platt's commitment to adapt to market conditions while securing resources for ongoing and future business activities. The information in this article is based on a press release statement from Leggett & Platt.
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