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CREDIT FACILITY | 9 Months Ended
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Jul. 31, 2025
Debt Disclosure [Abstract] |
CREDIT FACILITY | CREDIT FACILITY Credit Facility Information
(in millions) |  | July 31, 2025 |  | October 31, 2024
Current portion of long-term debt(1)(2) |  |  |  |
Gross term loan |  | $ | 30.0 |  |  | $ | 32.5 |
Unamortized deferred financing costs |  | (0.7) |  |  | (0.9) |
Current portion of term loan |  | $ | 29.3 |  |  | $ | 31.6 |
Long-term debt(1)(2) |  |  |  |
Gross term loan |  | $ | 562.5 |  |  | $ | 503.8 |
Unamortized deferred financing costs |  | (2.1) |  |  | (0.6) |
Total noncurrent portion of term loan |  | 560.4 |  |  | 503.2 |
Revolving line of credit(3) |  | 940.0 |  |  | 799.0 |
Long-term debt |  | $ | 1,500.4 |  |  | $ | 1,302.2 |
(1) At July 31, 2025, and October 31, 2024, the weighted average interest rate on all outstanding borrowings, not including letters of credit and swaps, was 6.09% and 6.68%, respectively. (2) At July 31, 2025, we had borrowing capacity of $621.7 million. (3) At July 31, 2025, standby letters of credit amounted to $29.7 million. On September 1, 2017, we refinanced and replaced our then-existing $800.0 million credit facility with a new senior, secured five-year syndicated credit facility (the “Credit Facility”), consisting of a $900.0 million revolving line of credit (the “Revolver”) and an $800.0 million amortizing term loan, both of which matured on September 1, 2022. In accordance with terms of the Credit Facility, the revolver was reduced to $800.0 million on September 1, 2018. The Credit Facility was amended on June 28, 2021, to increase the capacity of the Revolver and term loan to $1.3 billion and $650 million, respectively, and to extend the maturity to June 28, 2026. It was further amended on November 1, 2022, to transition the benchmark interest rate from London Interbank Offered Rate (“LIBOR”) to Secured Overnight Financing Rate (“SOFR”). On February 26, 2025, we amended and restated the Credit Facility (the “Amended Credit Facility”), extending the maturity date to February 26, 2030, and increasing the capacity of the revolving credit facility from $1.3 billion to $1.6 billion and the then-remaining term loan outstanding from $528.1 million to $600.0 million. The Amended Credit Facility provides for the issuance of up to $250.0 million for standby letters of credit and the issuance of up to $100.0 million in swingline advances. The obligations under the Amended Credit Facility are guaranteed by the material, domestic wholly owned subsidiaries of ABM and are secured by a pledge of substantially all of the existing and future property and assets of ABM and the guarantors, including a pledge of the capital stock of the wholly owned domestic subsidiaries held by ABM and the guarantors and 65% of the capital stock of the first-tier foreign subsidiaries held by ABM and the guarantors, in each case subject to exceptions. Additionally, we may repay amounts borrowed under the Amended Credit Facility at any time without penalty. The Amended Credit Facility contains certain covenants, including a maximum total net leverage ratio of 5.00 to 1.00, a maximum secured net leverage ratio of 4.00 to 1.00, and a minimum interest coverage ratio of 1.50 to 1.00, as well as other financial and non-financial covenants. In the event of a material acquisition, as defined in the Amended Credit Facility, we may elect to increase the maximum total net leverage ratio to 5.50 to 1.00 for a total of four fiscal quarters and increase the maximum secured net leverage ratio to 4.50 to 1.00 for a total of four fiscal quarters. Our borrowing capacity is subject to, and limited by, compliance with the covenants described above. At July 31, 2025, we were in compliance with these covenants. The Amended Credit Facility also includes customary events of default, including: failure to pay principal, interest, or fees when due; failure to comply with covenants; the occurrence of certain material judgments; and a change in control of the Company. If certain events of default occur, including certain cross-defaults, insolvency, change in control, or violation of specific covenants, then the lenders can terminate or suspend our access to the Amended Credit Facility, declare all amounts outstanding (including all accrued interest and unpaid fees) to be immediately due and payable, and require that we cash collateralize the outstanding standby letters of credit. We incurred deferred financing costs of $8.0 million in conjunction with the execution of the Amended Credit Facility and carried over $2.9 million of unamortized deferred financing from initial execution and previous amendments of the Credit Facility. Total deferred financing costs of $10.9 million, consisting of $3.0 million related to the term loan and $7.9 million related to the Revolver, are being amortized to interest expense over the term of the Amended Credit Facility. Long-Term Debt Maturities During the three and nine months ended July 31, 2025, we made principal payments under the term loan of $7.5 million and $15.6 million, respectively. As of July 31, 2025, the following principal payments are required under the Amended Credit Facility:
(in millions) |  | 2025 |  | 2026 |  | 2027 |  | 2028 |  | 2029 |  | 2030
Debt maturities |  | $ | 7.5 |  |  | $ | 30.0 |  |  | $ | 30.0 |  |  | $ | 30.0 |  |  | $ | 30.0 |  |  | $ | 1,405.0 |
Interest Rate Swaps We utilize interest rate swap agreements to fix the variable interest rates on portions of our debt. The purpose of using these derivatives is to reduce our exposure to the interest rate risk associated with variable borrowings. Under these agreements, we typically pay a fixed interest rate in exchange for a SOFR-based variable interest rate on a given notional amount. All of our interest rate swaps are designated and accounted for as cash flow hedges. Changes in the fair value of these derivatives are reported as a component of other comprehensive income and are reclassified into earnings in the period or periods in which the hedged transaction affects earnings. For information regarding the valuation of our interest rate swaps, see Note 6, “Fair Value of Financial Instruments.”
Notional Amount |  | Fixed Interest Rate |  | Effective Date |  | Maturity Date
$100.0 million |  | 1.72% |  | February 9, 2022 |  | June 28, 2026
$150.0 million |  | 1.85% |  | February 25, 2022 |  | June 28, 2026
$100.0 million |  | 2.88% |  | May 4, 2022 |  | June 28, 2026
$161.9 million (1) |  | 2.83% |  | July 7, 2022 |  | June 28, 2026
$13.1 million (1) |  | 2.79% |  | July 18, 2022 |  | June 28, 2026
$170.0 million |  | 3.81% |  | November 1, 2022 |  | June 28, 2026
(1) In July 2022, we entered into interest rate swap agreements with notional values totaling $300.0 million at inception. The notional amount reduces to $100.0 million in October 2025 before maturing on June 28, 2026. At July 31, 2025, and October 31, 2024, amounts recorded in accumulated other comprehensive loss (“AOCL”) for interest rate swaps were a gain of $5.1 million, net of taxes of $2.8 million, and a gain of $9.2 million, net of taxes of $4.3 million, respectively. At July 31, 2025, the total amount expected to be reclassified from AOCL to earnings during the next 12 months is a gain of $5.8 million, net of taxes of $2.1 million.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 8A -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-8A Reference 2: http://www.xbrl.org/2003/role/disclosureRef 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