Cintas Corporation (NASDAQ:CTAS) announced that its wholly owned subsidiary, Cintas Corporation No. 2, entered into a new $2 billion revolving credit facility on March 27, 2026. The agreement includes a letter of credit sub-facility of up to $300 million and a swing line sub-facility of up to $150 million.
KeyBank National Association is serving as the administrative agent for the financing arrangement. The revolving facility is scheduled to mature on March 27, 2031, while swing loans issued under the agreement will have a maximum maturity of 15 days.
Under the terms of the agreement, Cintas No. 2 has the option to request increases in its revolving commitments or establish additional term loan facilities totaling up to $1 billion, subject to customary conditions. The obligations tied to the facility are guaranteed by Cintas Corporation and certain significant domestic subsidiaries.
Borrowing costs will depend on the type of loan selected. Swing loans will carry the Base Rate, while other borrowings may be based on either the Term SOFR rate plus a margin of 70 to 114 basis points or the Base Rate, at the borrower’s election.
The credit agreement also contains standard covenants that limit certain liens and place restrictions on mergers, consolidations, or asset sales. Additionally, the company must maintain a leverage ratio of consolidated debt to consolidated EBITDA of no more than 3.50 to 1.00, although the limit can temporarily increase to 4.00 to 1.00 for up to four quarters following certain significant acquisitions.
As part of establishing the new facility, Cintas No. 2 terminated its previous credit agreement dated March 23, 2022, and fully repaid all obligations under that arrangement on March 27, 2026.