Simpson Manufacturing Secures New Five-Year Credit Facilities

The latest update is out from Simpson Manufacturing Co ( (SSD) ).

On December 16, 2025, Simpson Manufacturing Co., Inc. entered into a Second Amended and Restated Credit Agreement that replaces its March 30, 2022 facility and establishes a five-year $600 million revolving credit facility and a five-year $300 million term loan. The term loan was used at closing to refinance existing indebtedness and pay related fees, while the revolving facility will fund permitted acquisitions, investments, and ongoing working capital needs, with the company retaining the option to upsize the combined facilities by the greater of $525 million and 100% of its most recently reported consolidated EBITDA, subject to additional lender commitments and customary conditions. Pricing on the facilities is tied to Simpson’s net leverage ratio, with varying margins over base rates such as SOFR and other benchmark rates, and the agreement imposes customary affirmative and negative covenants, including limits on additional indebtedness, liens, investments, acquisitions, dividends and affiliate transactions, as well as financial maintenance tests requiring a maximum consolidated net leverage ratio of 3.50x (with a temporary step-up after qualifying acquisitions) and a minimum interest coverage ratio of 2.50x. The package of covenants and default provisions, which allows lenders to terminate commitments and accelerate obligations upon specified events, is designed to balance lender protections with Simpson’s financial flexibility, supporting its acquisition strategy and operational liquidity while constraining leverage and risk for creditors.

The most recent analyst rating on (SSD) stock is a Buy with a $187.00 price target. To see the full list of analyst forecasts on Simpson Manufacturing Co stock, see the SSD Stock Forecast page.

Spark’s Take on SSD Stock

According to Spark, TipRanks’ AI Analyst, SSD is a Outperform.

Simpson Manufacturing Co’s overall stock score reflects strong financial performance and strategic growth initiatives, particularly in Europe and OEM sectors. However, technical indicators suggest a neutral trend, and valuation metrics indicate moderate pricing. Challenges such as declining volumes and margin pressures are balanced by strategic cost-saving initiatives and shareholder value efforts.

To see Spark’s full report on SSD stock, click here.

More about Simpson Manufacturing Co

Simpson Manufacturing Co., Inc. operates in the industrial and construction materials sector, with its business supported by a network of domestic and international subsidiaries that utilize credit facilities to fund acquisitions, investments, working capital and general corporate purposes.

Average Trading Volume: 293,182

Technical Sentiment Signal: Hold

Current Market Cap: $6.92B

Learn more about SSD stock on TipRanks’ Stock Analysis page.