8-KOther Events

AGILENT TECHNOLOGIES, INC. 8-K Report, Corporate Update (Nov 23, 2010)

Filed November 23, 2010For Securities:A

Summary

Agilent Technologies, Inc. (Agilent) has filed an 8-K report on November 23, 2010, detailing an agreement with Lloyds TSB Bank plc regarding the repurchase of 15,000 Class A Preferred Shares of Agilent Technologies (Cayco) Limited. This repurchase, originally scheduled for January 27, 2011, has been brought forward to December 10, 2010, at the request of Agilent's subsidiary, Agilent Technologies World Trade, Inc. The total repurchase price is approximately $1.5 billion, with an additional $8 million in accrued quarterly payments and related fees, bringing the total to approximately $1.508 billion. Agilent intends to fund this obligation using its existing cash reserves. This action indicates a strategic move by Agilent to settle a significant financial obligation earlier than anticipated.

Key Highlights

  • 1Agilent Technologies World Trade, Inc. will repurchase 15,000 Class A Preferred Shares of Agilent Technologies (Cayco) Limited from Lloyds TSB Bank plc.
  • 2The repurchase date has been accelerated from January 27, 2011, to December 10, 2010.
  • 3The total repurchase price is approximately $1.5 billion.
  • 4Accrued quarterly payments and related fees bring the total settlement amount to approximately $1.508 billion.
  • 5Agilent plans to use its available cash to fund the repurchase.
  • 6The repurchase obligation stems from a Master Repurchase Agreement entered into in November 2008.

Frequently Asked Questions

The main event is Agilent Technologies, Inc.'s agreement with Lloyds TSB Bank plc to advance the repurchase date of 15,000 Class A Preferred Shares of Agilent Technologies (Cayco) Limited by its subsidiary, Agilent Technologies World Trade, Inc., from January 27, 2011, to December 10, 2010.

The total financial commitment for the repurchase is approximately $1.508 billion, which includes the $1.5 billion repurchase price and approximately $8 million for accrued quarterly payments and related fees.

Agilent Technologies plans to finance this repurchase using its available cash reserves.

The filing states that Agilent Technologies World Trade, Inc. requested and provided notice of the earlier Repurchase Date, and Lloyds TSB consented. The specific strategic reasons for the acceleration are not detailed in this filing but may involve optimizing cash management or eliminating future interest obligations.