On October 4, 2021, ZBS Global, Inc. (“Holdings”), Zurn Holdings, Inc., Zurn LLC (together, the “Original Borrowers”), the lenders from time to time party thereto, and Credit Suisse AG, Cayman Islands Branch, as administrative agent for the lenders entered into a Fourth Amended and Restated First Lien Credit Agreement as amended by that certain Amendment No. 1 to Fourth Amended and Restated First Lien Credit Agreement dated as of July 1, 2022 ("Amendment No. 1") (as so amended and as further amended to date, including Amendment No. 3 referenced below, the “Credit Agreement”). Pursuant to Amendment No. 1, Elkay joined the Credit Agreement as a borrower (Elkay and the Original Borrowers, collectively, the "Borrowers"). The Credit Agreement is funded by a syndicate of banks and other financial institutions and provides for (i) a $550.0 million term loan facility (the “Term Loan”) and (ii) a revolving credit facility (the “Revolving Credit Facility”). On February 19, 2026, the Borrowers entered into Amendment No. 3 to the Credit Agreement ("Amendment No. 3"), appointing JPMorgan Chase Bank, N.A. as successor administrative agent and successor collateral agent in accordance with the terms of the Credit Agreement. Amendment No. 3 also increased the Revolving Credit Facility commitment from $200.0 million to $550.0 million and further extended the maturity date of the Revolving Credit Facility to February 19, 2031.

The obligations under the Credit Agreement and related documents are secured by liens on substantially all of the assets of Holdings, the Borrowers, and certain subsidiaries of the Borrowers pursuant to a Third Amended and Restated Guarantee and Collateral Agreement, dated as of October 4, 2021, among Holdings, the Original Borrowers, the subsidiaries of the Original Borrowers party thereto, and the Administrative Agent, as supplemented pursuant to that certain Supplement No. 1 dated as of July 1, 2022, executed by Elkay and its domestic subsidiaries, and certain other collateral documents.

each fiscal quarter, a maximum Total Net Leverage Ratio (as defined in the Credit Agreement) of not greater than 4.00 to 1.00 (increasing to 4.50 to 1.00 at the Borrowers' election in conjunction with a Material Acquisition (as defined in the Credit Agreement)). As of June 30, 2026, the Borrowers were in compliance with all applicable covenants under the Credit Agreement.

The Credit Agreement provides for the issuance of a term loan facility in an aggregate principal amount of $550.0 million. The proceeds of the Term Loan were, together with the dividend received by the Company in connection with the Spin-Off Transaction and cash on hand, used to (i) repay in full a $625.0 million term loan, together with accrued interest thereon, (ii) redeem the $500.0 million of outstanding principal amount of the 4.875% Senior Notes due 2025, and (iii) pay related fees and expenses.

In October 2023, the Company made a voluntary prepayment on its Term Loan of $60.0 million. In connection with this prepayment, the Company recognized a $0.9 million loss on debt extinguishment to write off a portion of the unamortized debt issuance costs. The Term Loan has a maturity date of October 4, 2028. In connection with the voluntary prepayment of $60.0 million, quarterly principal payments are no longer required.

The Term Loan bears interest at the Borrowers' option, by reference to a base rate or a rate based on Term SOFR, plus a Term SOFR adjustment of 0.114%, 0.262%, or 0.428% for interest periods of one month, three months, and six months, respectively, plus an applicable margin based on the Borrowers' Net First Lien Leverage Ratio (as defined in the Credit Agreement) as of the last day of each fiscal quarter. If the Net First Lien Leverage Ratio is greater than 1.80 to 1.00, the applicable margin shall equal 1.25% in the case of base rate borrowings and 2.25% in the case of SOFR borrowings. In the event the Borrowers’ Net First Lien Leverage Ratio is less than or equal to 1.80 to 1.00, the applicable margin on both base rate and SOFR borrowings would decrease by 0.25%. The Borrowers’ Net First Lien Leverage Ratio was 0.36 to 1.00 as of June 30, 2026, and therefore the applicable margin is 2.00%.

The Credit Agreement includes a $550.0 million revolving credit facility that has a maturity date of February 19, 2031. The Revolving Credit Facility bears interest by reference to a base rate or a rate based on Term SOFR for interest periods of one month, three months, and six months, plus an applicable margin based on the Borrowers' Net First Lien Leverage Ratio as of the last day of each fiscal quarter. The applicable margin ranges from 0.25% in the case of base rate borrowings and 1.25% in the case of SOFR borrowings, when the Net First Lien Leverage Ratio is less than or equal to 1.50 to 1.00, to 0.75% in the case of base rate borrowings and 1.75% in the case of SOFR borrowings, when the Net First Lien Leverage Ratio is greater than 3.75 to 1.00. The Borrowers’ Net First Lien Leverage Ratio was 0.36 to 1.00 as of June 30, 2026. The Borrowers are also required to pay a quarterly commitment fee on the average daily unused portion of the Revolving Credit Facility for each fiscal quarter and fees in connection with the issuance of letters of credit. The commitment fee ranges from 0.175% when the Net First Lien Leverage Ratio is less than or equal to 1.50 to 1.00, to 0.300% when the Net First Lien Leverage Ratio is greater than 3.75 to 1.00.

In February 2026, in connection with Amendment No. 3, the Company capitalized $3.0 million of debt issuance costs as deferred financing costs on long-term borrowings, and wrote off $0.4 million of unamortized deferred financing costs related to lenders who exited the Revolving Credit Facility, which is included in other income (expense), net in the condensed consolidated statements of operations.

At June 30, 2026 and December 31, 2025, there were no amounts borrowed under the Revolving Credit Facility. As of June 30, 2026 and December 31, 2025, $9.7 million and $10.1 million, respectively, of the Revolving Credit Facility was considered utilized in connection with outstanding letters of credit.