Summary
Agilent Technologies, Inc. (A) filed an 8-K on May 14, 2007, primarily to announce the entry into a new Five-Year Credit Agreement and the release of its second fiscal quarter financial results. The Credit Agreement establishes a $300 million unsecured credit facility expiring on May 11, 2012, intended for general corporate purposes. This facility provides Agilent with financial flexibility, though no funds were borrowed at the time of the filing. The filing also includes the company's press release detailing financial results for the quarter ended April 30, 2007. Agilent utilizes and explains its use of non-GAAP financial measures in this release, asserting that these provide a more meaningful supplemental view of operational performance and future prospects, aligning with management's internal reporting and competitor analysis. Investors should note the details of the new credit facility, including its terms and covenants, as well as the financial performance reported in the accompanying press release.
Key Highlights
- 1Agilent Technologies entered into a $300 million unsecured, five-year credit facility expiring May 11, 2012.
- 2The credit facility is intended for general corporate purposes and was undrawn at the time of filing.
- 3Interest rates on the facility are variable, based on prime rate or LIBOR plus a margin (0.270% to 0.650%) dependent on credit ratings.
- 4A facility fee of 0.125% annually (approximately $375,000 at current ratings) will be paid.
- 5The credit agreement includes customary covenants, such as limitations on liens and subsidiary debt, and financial maintenance covenants.
- 6Key financial covenants include a maximum adjusted consolidated debt to consolidated EBITDA ratio of 3.25:1.00 and a minimum consolidated EBITDA to consolidated interest expense ratio of 3.00:1.00.
- 7Agilent also announced its financial results for the second fiscal quarter ended April 30, 2007, via a press release.