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| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt | Debt Consolidated long-term debt of the Company consisted of the following:
The Company’s long-term debt consists of borrowing with an original contractual maturity greater than one year, including its 2026 Term Loan B, Senior Secured Notes, Accounts Receivable Securitization, and 2026 Revolving Credit Facility. In connection with the closing of the Kito Crosby Acquisition, the Company entered into a new senior secured term loan credit facility (“2026 Term Loan B”) and a new revolving credit facility with an expanded bank lender group (“2026 Revolving Credit Facility”) and issued senior secured notes (“Senior Secured Notes”). The 2026 Term Loan B, 2026 Revolving Credit Facility and Senior Secured Notes also replaced the Company’s previous term loan credit facility (“2024 Term Loan B”) and revolving credit facility (“2024 Revolving Credit Facility”) and proceeds from the new credit facilities were used to fund the Kito Crosby Acquisition and fully repay the 2024 Term Loan B. There was no balance on the 2024 Revolving Credit Facility at the time of replacement by the Revolving Credit Facility. The Company’s accounts receivable securitization credit facility (“AR Securitization Facility”), expanded to $60,000,000 from $55,000,000 on August 11, 2025. The AR Securitization was not impacted by the Kito Crosby Acquisition. Senior Secured Notes On January 30, 2026 the Company completed an offering of $900,000,000 in aggregate principal amount of 7.125% senior secured notes maturing February 1, 2033 in a private placement ("Senior Secured Notes"). The Senior Secured Notes bear interest at a rate of 7.125% per year payable semi-annually in cash in arrears on February 1 and August 1 of each year. The first such interest payment will be made on August 1, 2026. The Senior Secured Notes were issued pursuant to an indenture, dated as of January 30, 2026 (the “Indenture”), between the Company and Wilmington Trust, National Association, as trustee (the “Trustee”) and as note collateral agent (the “Note Collateral Agent”). On February 3, 2026, and in connection with the closing of the Kito Crosby Acquisition, the Company, the guarantors party thereto (the “Note Guarantors”), the Trustee and the Note Collateral Agent entered into a first supplemental indenture (the “Supplemental Indenture”) pursuant to which, among other things, the Note Guarantors unconditionally guaranteed the Notes. The Company may redeem the Senior Secured Notes, in whole or in part, at its option, at any time and from time to time on and after February 1, 2029, at the following redemption prices (expressed as percentages of principal amount), plus accrued and unpaid interest, if any, to, but excluding, the relevant redemption date, if redeemed during the twelve-month period beginning on February 1 of the years set forth below:
At any time and from time to time prior to February 1, 2029, the Company at its option may redeem up to 40.0% of the aggregate principal amount of the Senior Secured Notes with the aggregate proceeds of certain equity offerings at a price equal to 107.125% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. At any time prior to February 1, 2029, the Company may, at its option, redeem some or all of the Notes at a redemption price equal to 100.0% of the aggregate principal amount of the Notes to be redeemed, plus a “make-whole” premium and accrued and unpaid interest, if any, to, but excluding, the redemption date. Upon the occurrence of a Change of Control (as defined in the Indenture), the Company may be required to offer to repurchase the Senior Secured Notes at a price of 101.0% of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. Gross deferred debt issuance costs related to the Senior Secured Notes were $13,973,000 of which $333,000 were amortized through March 31, 2026. New 2026 Term Loan B On February 3, 2026, Columbus McKinnon Corporation (the “Borrower”) entered into a new credit agreement for a senior secured term loan credit facility or 2026 Term Loan B, in the initial amount of $1,650,000,000 maturing February 3, 2033, and a $500,000,000 revolving line of credit ("2026 Revolving Credit Facility") with a group of financial institutions or Revolving Credit Facility maturing February 3, 2028 (“2026 Credit Agreement”) with JPMorgan Chase Bank, N.A. as Administrative Agent and the lenders named therein. The 2026 Term Loan B replaced the Company’s 2024 Term Loan B. Proceeds of the 2026 Term Loan B were used to complete the Kito Crosby Acquisition as well as fully repay the Company’s 2024 Term Loan B. On March 4, 2026 the Company repaid $191,080,000 of the 2026 Term Loan B using the proceeds of the divestiture of the Company’s U.S. Power Chain Hoist and Chain Operations (See Note 3). The Company also received credit for a pro rata proportion of the Original Issuer Discount paid to the 2026 Term Loan B lenders in an amount of $1,900,000 totaling a $193,010,000 reduction in the 2026 Term Loan B after completion of the Divestiture per the terms of the 2026 Credit Agreement. As outlined in the 2026 Credit Agreement, prepayments can be made without penalty after August 3, 2026. Borrowings under the 2026 Credit Agreement, at the Company’s election, bear interest at either Secured Overnight Financing Rate ("SOFR") subject to a 50 basis point floor or base rate plus an applicable margin of 350 basis points per annum. At March 31, 2026, the outstanding principal balance of the 2026 Term Loan B was $1,456,990,000 or $1,411,312,000 net of $45,678,000 of unamortized discount and debt issuance costs. Debt issuance costs are amortized over the contractual term to interest expense. The accumulated amortization balance was $1,161,000 as of March 31, 2026. The Company is obligated to make $12,375,000 of principal payments on the 2026 Term Loan B facility over the next 12 months plus applicable Excess Cash Flow ("ECF") payments, if required, however, plans to pay down approximately $160,000,000 in principal payments in total during such 12 month period. This amount has been recorded within the current portion of long term debt on the Company's Consolidated Balance Sheet with the remaining balance recorded as long term debt. The gross balance of deferred financing costs on the 2026 Term Loan B facility was $46,839,000 of March 31, 2026. The accumulated amortization balance was $1,161,000 as of March 31, 2026. The terms of the 2026 Credit Agreement requires quarterly principal amortization of 0.25% with the remaining principal due at the maturity date. In addition, if the Company has Excess Cash Flow as defined in the 2026 Credit Agreement, the Company may be required to pay the Excess Cash Flow in excess of a specified Excess Cash Flow percentage for each fiscal year minus optional prepayments. The Excess Cash Flow Percentage is defined as 50% stepping down to 25% or 0% based on the achievement of specified Consolidated First Lien Leverage Ratio as of the last day of the immediately preceding fiscal year. No Excess Cash Flow payments were due as of March 31, 2026. 2026 Revolving Credit Facility On February 3, 2026, Columbus McKinnon Corporation (the “Borrower”) entered into a new $500,000,000 2026 Revolving Credit Facility with a group of financial institutions or Revolving Credit Facility, maturing February 3, 2031 governed by the 2026 Credit Agreement. The Revolving Credit Facility replaced the Company’s previous revolving credit facility, the 2024 Revolving Credit Facility. Borrowings for the New Revolving Facility will bear interest at either the bank’s base rate or SOFR plus an applicable margin as defined in the 2026 Credit Agreement for U.S. borrowing or an alternative benchmark rate plus an applicable margin for borrowing in alternative currencies as permitted by the 2026 Credit Agreement. The applicable margin is adjusted based on the Company’s Consolidated Total Leverage Ratio (as defined in the 2026 Credit Agreement) as set forth in the 2026 Credit Agreement. As of March 31, 2026, there was $25,000,000 of borrowings outstanding under the 2026 Revolving Credit Facility and availability under the 2026 Revolving Credit facility was $458,933,000 net of $16,067,000 outstanding standby letters of credit issued against the 2026 Revolving Credit Facility and the borrowings outstanding. Gross deferred debt issuance costs related to the 2026 Revolving Credit Facility were $7,038,000 of which $235,000 were amortized through March 31, 2026. The new 2026 Revolving Credit Facility replaced the Company’s previous 2024 Revolving Credit Facility. There were no outstanding borrowings on the 2024 Revolving Credit Facility at the time of its replacement on February 3, 2026. Financial Covenants and Default Provisions of the 2026 Credit Agreement and Senior Secured Notes The 2026 Credit Agreement and the Senior Secured Notes Indenture (collectively the “Debt Agreements”) provides for customary events of default, including the following (subject to any applicable cure period): nonpayment, breach of covenants in the Indenture, payment defaults under or acceleration of certain other indebtedness, failure to discharge certain judgments and certain events of bankruptcy, insolvency and reorganization. Additionally, provisions contained in the Debt Agreements include customary covenants required of the Company and its subsidiaries including various affirmative and negative financial and operational covenants. Included in the 2026 Credit Agreement, the key financial covenants prohibit the Consolidated First Lien Leverage Ratio for the reference period ended on such date from exceeding 7.75 to 1.00 as of any date of determination with step-downs for the first three years to 7.25 to 1.00, 6.75 to 1.00 and 6.25 to 1.00. The Senior Secured Notes Indenture contains certain covenants applicable to the Company and its restricted subsidiaries, including limitations on liens, incurrence of indebtedness and mergers, consolidations and sale of assets. The Indenture also contains requirements relating to additional subsidiary guarantors. Each of these covenants is subject to important exceptions and qualifications. In addition, most of these covenants will be suspended for so long as the Notes are rated investment grade by either Moody’s Investment Service, Inc. or Standard & Poor’s Financial Services LLC and no default under the Indenture has occurred and is continuing. The Senior Secured Notes Indenture provides for customary events of default, including the following (subject to any applicable cure period): nonpayment, breach of covenants in the Indenture, payment defaults under or acceleration of certain other indebtedness, failure to discharge certain judgments and certain events of bankruptcy, insolvency and reorganization. If an event of default occurs or is continuing, the Trustee, acting at the direction of holders of at least 30.0% in aggregate principal amount of the Notes then outstanding, may declare the principal of, premium, if any, and accrued and unpaid interest, if any, to be due and payable immediately. AR Securitization Facility Since June 20, 2023, the Company used an AR Securitization Facility secured by the Company’s U.S. accounts receivable balances (the “AR Securitization Facility”) for general business purposes, including seasonal net working capital needs. In fiscal 2026 the AR Securitization Facility was amended to increase the maximum principal amount to $60,000,000 from the original borrowing base of $55,000,000, subject to a borrowing base calculation pursuant to the definitions and methodology outlined in the related credit agreement, eliminated the 10 basis point credit spread adjustment to the cost of borrowing, and extending its term through August 11, 2028. The AR Securitization Facility borrowings bear interest at a floating rate equal to a one-month SOFR rate plus a 110 basis points applicable margin. Amounts drawn under the AR Securitization Facility may remain outstanding until the maturity date of the AR Securitization Facility on August 11, 2028. The AR Securitization Facility Agreement contains customary events of default (referred to as “Amortization Events.”) Amounts drawn under the AR Securitization Facility may remain outstanding until the maturity date of the AR Securitization Facility on August 11, 2028. Prior to the maturity date, the Company is only required to repay principal to the extent necessary to maintain borrowing base compliance, unless an Amortization Event occurs. As of March 31, 2026, there have been no Amortization Events triggered in the AR Securitization Facility. As of March 31, 2026, the Company has $53,400,000 outstanding under its AR Securitization Facility. The total U.S. accounts receivable balances which secure the AR Securitization Facility total $84,039,000 as of March 31, 2026. The Company has recorded $273,000 in deferred financing costs, of which $139,000 is related to the AR Securitization Facility extension and $134,000 relates to unamortized fees carried over from the Company's prior AR Securitization Facility. These balances will be amortized through August 11, 2028 and are classified in Term loan, Senior Secured Notes, AR securitization facility and finance lease obligations on the Company's Consolidated Balance Sheet. The gross balance of deferred financing costs associated with the AR Securitization Facility was $273,000 and $536,000 as of March 31, 2026 and 2025, respectively. The accumulated amortization balance of $53,000 and $327,000 as of March 31, 2026 and 2025. As of March 31, 2026, there have been no Amortization Events triggered in the AR Securitization Facility. The Company has both the ability and intent to have the AR Securitization Facility remain outstanding for the next 12 months. As such, the Company has classified the full $53,400,000 outstanding borrowings under the AR Securitization Facility as long-term debt at March 31, 2026. Other debt of $5,606,000 includes a secured loan assumed in the Kito Crosby acquisition that had previously been used to purchase a building in the United States. It matures on December 31, 2026 and has an interest rate of 2.7%. The full amount is included in the current portion of long term debt. The principal payments obligated to be made as of March 31, 2026 on the 2026 Term Loan B, the Senior Secured Notes and AR Securitization are as follows:
2024 Term Loan B and 2024 Revolving Credit Facility In fiscal 2025 and through February 3, 2026, the Company had outstanding its 2024 Term Loan B and 2024 Revolving Credit Facility. The initial amount of the 2024 Term Loan B was $450,000,000 maturing May 14, 2028, and the initial amount of the 2024 Revolving Credit Facility was $100,000,000. The Company borrowed additional funds in accordance with the Accordion feature under its existing Term Loan B facility in the amount of $75,000,000 in both fiscals 2022 and 2024. Proceeds from the first Accordion were used, among other things, to finance the purchase price for the Garvey acquisition, and pay related fees, expenses, and transaction costs. Proceeds from the second Accordion were used, among other things, to repay borrowings on the Amended and Restated Revolving Credit Facility in connection with the purchase of montratec. No material amendment to the terms of the Term Loan B facility or the First Lien Facilities were necessary for the Company to utilize the Accordion feature. The Company recorded $892,000 in deferred financing costs on the first Accordion in fiscal 2022 and $1,522,000 on the second Accordion in fiscal 2024, both of which will be amortized over the remaining life of the Term Loan B. The Company borrowed against the expanded Amended and Restated Revolving Credit Facility in May of fiscal 2024 to initially fund the montratec acquisition. During fiscal 2024, the Company amended its Revolving Credit Facility increasing its size by $75,000,000 for a total of $175,000,000. The Company incurred fees of $801,000 in this transaction which were deferred and amortized over the remaining term of the Amended and Restated Revolving Credit Facility. The Company borrowed against the expanded Revolving Credit Facility in May of 2023 to initially fund the montratec acquisition. These borrowings were fully repaid in fiscal 2024. On March 18, 2024, Columbus McKinnon Corporation entered into a Fourth Amendment (the “Fourth Amendment”) to the Amended and Restated Credit Agreement, dated as of May 14, 2021, by and among the Company, Columbus McKinnon EMEA GmbH, the lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and the other agents parties thereto, as amended (the “Credit Agreement”). The Fourth Amendment reduces the interest rate margin applicable under the Term Loan B by for both term Secured Overnight Financing Rate ("SOFR") borrowings and base rate borrowings and eliminates the Term SOFR Adjustment on the term loan B only which varied based on the interest period selected. After giving effect to the repricing, the applicable interest rate margins for the Term Loan B are 2.50% for term SOFR borrowings and 1.50% for base rate borrowings. The Company has accounted for the Fourth Amendment as a debt modification, therefore, debt repricing fees incurred in fiscal 2024 were expensed as general and administrative expenses and the deferred financing fees incurred as part of the Term Loan B (discussed below) remain unchanged. In addition to the above, the Company amended the variable interest component of its Term Loan B and Amended and Restated Revolving Credit Facility to transition from LIBOR to SOFR in fiscal 2024. The outstanding principal balance of the 2024 Term Loan B facility was $437,560,000 or $433,916,000 net of $3,644,000 of unamortized discount and debt issuance costs as of March 31 2025. Debt issuance costs were amortized over the contractual term to interest expense using the effective interest rate in effect at issuance. The outstanding principal balance of the 2024 Term Loan B facility $437,560,000 as of March 31, 2025. The Company made $40,000,000 of principal payments on the 2024 Term Loan B fiscal 2025. As of March 31, 2025, there was no balance on the 2024 Revolving Credit Facility and the availability on the 2024 Revolver was $159,583,000 net of $15,417,000 of outstanding standby letters of credit. The gross balance of deferred financing costs associated with the 2024 Revolving Credit Facility was $4,828,000, which were included in Other assets on the Consolidated Balance Sheet with accumulated amortization of $3,733,000 as of March 31, 2025. The gross balance of deferred financing costs on the 2024 Term Loan B facility $7,845,000 March 31, 2025. The accumulated amortization balance was $4,201,000 as of March 31, 2025. Key Terms of the 2024 Term Loan B and 2024 Revolving Credit Facility: •Term Loan B: An aggregate $450,000,000 Term Loan B facility, which requires quarterly principal amortization of 0.25% with the remaining principal due at the maturity date. In addition, if the Company has ECF as defined in the Credit Agreement for the First Lien Facilities (the “First Lien Facilities Credit Agreement”), the ECF Percentage of the Excess Cash Flow for each fiscal year minus optional prepayments of the Loans (except prepayments of Revolving Loans that are not accompanied by a corresponding permanent reduction of Revolving Commitments) pursuant to Section 2.10(a) of the First Lien Facilities Credit Agreement other than to the extent that any such prepayment is funded with the proceeds of Funded Debt, shall be applied toward the prepayment of the Term Loan B facility. The ECF Percentage is defined as 50% stepping down to 25% or 0% based on the achievement of specified Secured Leverage Ratios as of the last day of such fiscal year. Further, the Company may draw additional Incremental Facilities (referred to as an "Accordion") by executing and delivering to JPMorgan Chase Bank, N.A. an Increased Facility Activation Notice specifying the amount of such increase requested. Lenders shall have no obligation to participate in any increase unless they agree to do so in their sole discretion. •Revolver: An aggregate $100,000,000 (later amended to $175,000,000 as described above) secured revolving facility which includes sublimits for the issuance of standby letters of credit, swingline loans and multi-currency borrowings in certain specified foreign currencies. •Fees and Interest Rates: Commitment fees and interest rates are determined on the basis of either a Eurocurrency rate or a Base rate plus an applicable margin, and credit spread adjustment. In the case of the Revolving Credit Facility, the applicable margin is based upon the Company's Total Leverage Ratio (as defined in the First Lien Facilities Credit Agreement) in the case of Revolver loans. •Prepayments: Provisions permitting a Borrower to voluntarily prepay either the Term Loan B facility or Revolver in whole or in part at any time, and provisions requiring certain mandatory prepayments of the Term Loan B facility or Revolver on the occurrence of certain events which will permanently reduce the commitments under the First Lien Facilities Credit Agreement, each without premium or penalty, subject to reimbursement of certain costs of the Lenders. •Covenants: Provisions containing covenants required of the Company and its subsidiaries including various affirmative and negative financial and operational covenants. The key financial covenant is triggered only on any date when any Extension of Credit under the Amended and Restated Revolving Credit Facility is outstanding (excluding any Letters of Credit) (the “Covenant Trigger”), and prohibits the Total Leverage Ratio for the Reference Period ended on such date from exceeding (i) 6.75:1.00 as of any date of determination prior to June 30, 2021, (ii) 5.50:1.00 as of any date of determination on June 30, 2021 and thereafter but prior to June 30, 2022, (iii) 4.50:1.00 as of any date of determination on June 30, 2022 and thereafter but prior to June 30, 2023 and (iv) 3.50:1.00 as of any date of determination on June 30, 2023 and thereafter. •Collateral: Obligations under the First Lien Facilities are secured by liens on substantially all assets of the Company and its material domestic subsidiaries. Finance Lease In connection with Dorner acquisition, the Company recorded a finance lease for a manufacturing facility in Hartland, WI under a 23 year lease agreement, which terminates in 2035. The outstanding balance on the finance lease obligation is $11,549,000 as of March 31, 2026 of which $812,000 has been recorded within the Current portion of long term debt and the remaining balance recorded within Term loan, Senior Secured Notes, AR securitization facility and finance lease obligations on the Company's Consolidated Balance Sheet. See Note 18 for further details. Non-U.S. Lines of Credit and Loans Unsecured and uncommitted lines of credit are available to meet short-term working capital needs for certain of our subsidiaries operating outside of the U.S. The lines of credit are available on an offering basis, meaning that transactions under the line of credit will be on such terms and conditions, including interest rate, maturity, representations, covenants, and events of default, as mutually agreed between our subsidiaries and the local bank at the time of each specific transaction. As of March 31, 2026, unsecured credit lines totaled approximately $5,853,000, including $2,734,000 related to the Kito Crosby acquisition. As of March 31, 2026, $578,000 was drawn. In addition, unsecured lines of $23,071,000, including $1,931,000 related to the Kito Crosby acquisition, were available for bank guarantees issued in the normal course of business of which $19,128,000 and nothing from the Kito Crosby was utilized as of March 31, 2026.
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