8-KMaterial AgreementsExhibits & Filings

AGILENT TECHNOLOGIES, INC. 8-K Report, Material Agreement (Oct 25, 2011)

Filed October 25, 2011For Securities:A

Summary

Agilent Technologies, Inc. has announced the entry into a new $400 million unsecured five-year credit facility, effective October 20, 2011, which will expire on October 21, 2016. This new facility replaces their previous credit agreement and is intended for general corporate purposes. The company has the option to increase the facility by an additional $300 million and can extend the maturity date by one year on up to two occasions, subject to lender discretion and certain conditions. The credit agreement outlines variable interest rates based on either a base rate or an interbank offered rate, with applicable margins determined by Agilent's senior debt credit ratings. At the time of the filing, with existing credit ratings, the applicable margin for the base rate was 0.125% and for interbank offered rate loans was 1.125%. The company will also pay an annual facility fee of 0.125% (approximately $500,000 per year) based on current ratings. The agreement includes standard covenants, such as limitations on liens and subsidiary debt, and a requirement to maintain a debt-to-EBITDA ratio not exceeding 3.5 to 1.0.

Key Highlights

  • 1Agilent Technologies entered into a new $400 million unsecured five-year credit facility on October 20, 2011, replacing its prior agreement.
  • 2The new facility has a maturity date of October 21, 2016.
  • 3The company has the option to increase the facility by up to $300 million and extend the maturity by one year twice.
  • 4Funds from the facility are designated for general corporate purposes; no immediate borrowing is planned.
  • 5Interest rates are variable, based on either a base rate or an interbank offered rate, with margins tied to credit ratings.
  • 6At current credit ratings, the applicable margin for base rate loans is 0.125%, and for LIBOR/EURIBOR loans is 1.125%.
  • 7A customary covenants package is included, featuring a debt-to-EBITDA leverage ratio limit of 3.5:1.0.

Frequently Asked Questions

The new credit agreement establishes a $400 million five-year unsecured credit facility for Agilent Technologies, Inc. The funds borrowed under this facility are intended for general corporate purposes, allowing the company flexibility in managing its operations and potential opportunities.

The facility has a $400 million limit and matures on October 21, 2016. Interest rates vary based on a choice between a base rate or an interbank offered rate, plus an applicable margin. At Agilent's current credit ratings, these margins are 0.125% for the base rate and 1.125% for interbank rates. An annual facility fee of 0.125% is also payable.

Yes, Agilent has the option to increase the credit facility by up to $300 million in aggregate, subject to certain conditions and lender participation. Additionally, the company can extend the maturity date of the facility by one year on up to two separate occasions, again subject to lender discretion.

The credit agreement includes customary representations and covenants. Notably, it requires Agilent to maintain a ratio of adjusted consolidated debt to consolidated EBITDA of not greater than 3.5 to 1.0. It also contains limitations on the incurrence of liens and indebtedness by subsidiaries.