8-KMaterial AgreementsFinancial EventsExhibits & Filings

AGILENT TECHNOLOGIES, INC. 8-K Report, Material Agreement (Mar 13, 2019)

Filed March 13, 2019For Securities:A

Summary

Agilent Technologies, Inc. has entered into a new $1 billion, five-year unsecured credit facility that matures on March 13, 2024. This facility replaces their previous credit line and is designed to provide financial flexibility for general corporate purposes, including potential stock repurchases and acquisitions. The company has the option to increase the facility size by up to an additional $500 million, subject to lender commitments and customary conditions. The terms of the new credit facility offer variable interest rates based on either the alternate base rate or LIBOR/EURO interbank offered rates, with margins tied to Agilent's senior debt credit ratings. At the time of the filing, the applicable margins were competitive, reflecting Agilent's current creditworthiness. The agreement also includes covenants common to such facilities, such as limitations on indebtedness and liens, and a leverage ratio requirement, ensuring prudent financial management.

Key Highlights

  • 1Agilent Technologies secured a new $1 billion, five-year unsecured credit facility maturing March 13, 2024.
  • 2The new facility replaces the Company's existing credit agreement.
  • 3The Company can potentially increase the credit facility by an aggregate of $500 million through Incremental Facilities.
  • 4Funds from the credit facility are designated for general corporate purposes, including stock repurchases and potential acquisitions.
  • 5Interest rates are variable, based on alternate base rate or LIBOR/EURO interbank rates, with margins linked to Agilent's credit ratings.
  • 6The credit agreement includes standard covenants such as limitations on liens and indebtedness, and a leverage ratio requirement.

Frequently Asked Questions

The primary purpose of this new $1 billion credit facility is to provide Agilent Technologies with financial flexibility for general corporate purposes, which can include funding stock repurchase programs and pursuing potential acquisitions.

Yes, Agilent has the option to increase the commitments under this facility or establish new incremental term loan facilities by an aggregate amount not exceeding $500 million, subject to obtaining commitments from lenders and meeting certain conditions.

The credit facility is unsecured and has a five-year term. Interest rates can be based on either the alternate base rate or LIBOR/EURO interbank rates, with applicable margins varying based on Agilent's senior debt credit ratings. A quarterly facility fee is also payable, currently set at 0.100% per year based on the Company's credit ratings.

This new credit facility replaces Agilent's existing credit facility, which was terminated upon the closing of the new agreement. It is intended to provide a more flexible and potentially larger source of funding for future corporate needs.