nVent Secures $600M Term Loan Facility to Fund $1.75B Maverick Power Acquisition

Overview of Filing

On September 17, 2026, nVent Electric plc filed a Current Report on Form 8-K under Item 2.03 (Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant) and Item 9.01 (Financial Statements and Exhibits).

Key Transaction Details

1. $600.0 Million Senior Unsecured Term Loan Facility:

   • Parties: Hoffman Schroff Holdings, Inc. (Borrower, a subsidiary of nVent), nVent Electric plc (Guarantor), nVent Finance S.à r.l. (Guarantor), and a syndicate of lenders with Bank of America, N.A. acting as Administrative Agent.
   • Purpose: Hoffman intends to borrow the entire $600.0 million to finance a portion of the previously announced $1.75 billion acquisition of Maverick Power, LLC and cover associated fees/expenses.
   • Maturity: Three years from the date the term loans are funded.
   • Pricing: Base rate or Term SOFR plus an applicable margin based on either nVent’s net leverage ratio or Hoffman's public debt rating.
   • Ticking Fees: Undrawn commitment ticking fees of 0.10% to 0.20% per annum begin accruing December 19, 2026 until funded or terminated.

2. Financial Covenants:

   • Maximum Net Leverage Ratio: Net consolidated debt to EBITDA cannot exceed 3.75 to 1.00 (with an option to step up to 4.25 to 1.00 for four fiscal quarters following qualifying material acquisitions).
   • Minimum Interest Coverage Ratio: EBITDA to consolidated cash interest expense cannot be less than 3.00 to 1.00.

3. Amendment No. 2 to Existing Credit Agreement:

   • Amended the Second Amended and Restated Credit Agreement (dated June 30, 2025) to incorporate limited conditionality provisions to a $250.0 million sublimit of the revolving facility to further assist in financing the Maverick Power acquisition.
   • The total aggregate borrowing capacity under the existing facility remains unchanged at up to $875.0 million.

Financial and Market Implications

• Execution of M&A Strategy: Securing the $600 million term loan and tailoring the $250 million revolving sublimit provides nVent with concrete debt financing structure for the $1.75 billion Maverick Power deal, reducing execution and financing risk.
• Balance Sheet Impact: While this increases pro forma leverage, the covenant threshold provides headroom up to 4.25x for post-acquisition integration periods.