Kennametal strengthens balance sheet and liquidity

Kennametal Strengthens Balance Sheet & Enhances Liquidity Kennametal Strengthens Balance Sheet & Enhances Liquidity PR Newswire Actions extend debt maturities, preserve financial flexibility and support growth opportunities Raised additional $700 million liquidity through new 3-year term loan and expansion of existing revolving credit facility Additional liquidity supports near-term tungsten related working capital needs while preserving long-term flexibility Refinanced $300 million in bonds, extending maturities to 2036, as previously reported Transactions consistent with maintained investment grade credit rating profile PITTSBURGH , May 29, 2026 /PRNewswire/ -- Kennametal Inc. (NYSE: KMT) (the "Company") today announced a series of financing transactions designed to enhance liquidity, extend debt maturities and position the Company to capture near-term growth opportunities. The actions provide additional financial flexibility to support near-term tungsten related working capital needs while preserving flexibility to respond to future market developments. "We continue to see opportunities for share gain and volume growth from the unique combination of market recovery, progress on our strategic initiatives and this window of opportunity from the current tungsten market," said Sanjay Chowbey, Kennametal President and CEO.

"These recent transactions position us to fund near-term working capital requirements while maintaining balance sheet discipline. At the same time, we have extended our debt maturity profile and are enhancing our liquidity position." Transaction Highlights Bond Refinancing, as previously reported: On May 19, 2026, the Company commenced a cash Tender Offer for the $300 million 4.625% Senior Notes due in 2028. Concurrent with the tender offer, the Company commenced a $300 million offering of 5.800% 10-year senior unsecured notes (Notes Offering) maturing in 2036.

The Notes Offering was completed on May 28, 2026, and the Tender Offer was completed on May 29, 2026. The Company intends to use the residual proceeds from the Notes Offering to redeem any remaining 2028 Notes not tendered.   The Company intends to provide the trustee with a redemption notice to be issued to the holders to redeem the remaining 2028 Notes. The redemption date for the 2028 Notes will be July 1, 2026.

The redemption price will be equal to the greater of (i) 100% of the principal amount of the redeemed 2028 Notes, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the 2028 Notes to be redeemed from the redemption date to the par call date (as defined in the 2028 notes) (not including the portion of any such payments of interest accrued as of the redemption date) discounted to the redemption date in accordance with customary market practice on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined in the 2028 Notes) plus 30 basis points, plus, in each case, accrued and unpaid interest thereon to the redemption date. Term Loan: On May 28, 2026, the Company entered into a 3-year $500 million delayed draw term loan with an interest rate of SOFR (Secured Overnight Financing Rate) plus 112.5 basis points. The term loan allows for up to three draws to September 30, 2026, and is prepayable at any time either in part or in its entirety.

Covenants on the term loan are consistent with those on the Company's existing Revolving Credit Facility.   Revolving Credit Facility: Concurrent with the new 3-year $500 million term loan, on May 28, 2026, the Company upsized its revolving credit agreement by $200 million to $850 million utilizing the accordion feature in place with the existing facility. There are no changes to the existing terms, pricing, covenants or maturity. Credit Outlook Upon completion of the above transactions, the Company maintains its existing investment grade credit ratings and stable outlooks.

Certain statements in this release may be forward-looking in nature, or "forward-looking statements" within the meaning of Section   27A of the Securities Act of 1933 and Section   21E of the Securities Exchange Act of 1934. Forward-looking statements are statements that do not relate strictly to historical or current facts. For example, statements regarding our expectations regarding future growth and financial performance are forward-looking statements.

Any forward-looking statements are based on current knowledge, expectations and estimates that involve inherent risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should the assumptions underlying the forward-looking statements prove incorrect, our actual results could vary materially from our current expectations. There are a number of factors that could cause our actual results to differ from those indicated in the forward-looking statements.

They include: uncertainties related to changes in macroeconomic and/or global conditions, including as a result of increased inflation, tariffs, and Russia's invasion of Ukraine and the resulting sanctions on Russia; the conflicts in the Middle East; other economic recession; our ability to achieve all anticipated benefits of restructuring initiatives; Commercial Excellence growth initiatives, Operational Excellence initiatives, our foreign operations and international markets, such as currency exchange rates, different regulatory environments, trade barriers, exchange controls, and social and political instability, including the conflicts in Ukraine and the Middle East; changes in the regulatory environment in which we operate, including environmental, health and safety regulations; potential for future goodwill and other intangible asset impairment charges; our ability to protect and defend our intellectual property; continuity of information technology infrastructure; competition; our ability to retain our management and employees; demands on management resources; availability and cost of the raw materials we use to manufacture our products, including tungsten; product liability claims; integrating acquisitions and achieving the expected savings and synergies; global or regional catastrophic events; demand for and market acceptance of our products; business divestitures; energy costs; commodity prices; labor relations; and implementation of environmental remediation matters. Many of these risks and other risks are more fully described in Kennametal's latest annual report on Form 10-K and its other periodic filings with the Securities and Exchange Commission. We can give no assurance that any goal or plan set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements, which speak only as of the date made.

We undertake no obligation to release publicly any revisions to forward-looking statements as a result of future events or developments. About Kennametal With over 85 years as an industrial technology leader, Kennametal Inc. delivers productivity to customers through materials science, tooling and wear-resistant solutions. Customers across aerospace and defense, earthworks, energy, general engineering and transportation turn to Kennametal to help them manufacture with precision and efficiency.

Every day approximately 8,100 employees are helping customers in nearly 100 countries stay competitive. Kennametal generated $2 billion in revenues in fiscal 2025. Learn more at www.kennametal.com .

Follow @Kennametal: Instagram, Facebook, LinkedIn and YouTube. View original content: https://www.prnewswire.com/news-releases/kennametal-strengthens-balance-sheet--enhances-liquidity-302785551.html SOURCE Kennametal Inc. PR Newswire May 29, 2026 - 5:30 AM PDT News by QuoteMedia www.quotemedia.com