IRM · 10-Q · 2026Q2 · Full report

Interest Rate and Refinancing Exposure

IRON MOUNTAIN INC · 2026-08-05 · Importance 56 · Surprise 24 · In source text

Iron Mountain’s Credit Agreement and bond indentures impose leverage and fixed-charge coverage covenants that constrain acquisitions, dividends, additional debt, investments and asset sales. As of June 30, 2026, the company’s net total lease-adjusted leverage ratio was 4.8x versus a 7.0x maximum, and its fixed-charge coverage ratio was 2.5x versus a 1.5x minimum. The company was compliant with these requirements, but noncompliance would materially adversely affect its financial condition and liquidity. Iron Mountain also stated that its ability to service or refinance debt depends on future performance, working capital and market financing availability.

Key facts

• As of June 30, 2026 we have approximately $1,032.0 million in notional value outstanding on our interest rate swap agreements and as of December 31, 2025 we had $1,349.0 million. source
• Interest expense, net for the six months ended June 30, 2026: $447,267 thousand, increased $47.5 million vs prior year $399,801 thousand, primarily due to higher average debt outstanding. source
• As of June 30, 2026 our interest rate swap agreements have maturity dates ranging from August 2026 through June 2029. source
• Weighted average interest rate (inclusive of fees associated with outstanding letters of credit) was 5.6% as of June 30, 2026 and 5.7% as of June 30, 2025. source
• The Credit Agreement uses EBITDAR-based calculations and the bond indentures use EBITDA-based calculations as the primary measures of financial performance for purposes of calculating leverage and fixed charge coverage ratios. source
• Certain of our interest rate swap agreements have notional amounts that will increase with the underlying hedged transaction. source
• The excluded component of our cross-currency swap agreements is recorded in Accumulated other comprehensive items, net and amortized to interest expense on a straight-line basis. source
• Our ability to pay interest on or to refinance our indebtedness depends on our future performance, working capital levels and capital structure which are subject to general economic, financial, competitive, legislative, regulatory and other factors. source

Impact estimates