Summary
Agilent Technologies, Inc. (Agilent) has entered into a new $1.5 billion five-year unsecured credit facility, maturing on June 7, 2028. This facility replaces a previous credit agreement and provides Agilent with significant financial flexibility for general corporate purposes. The company has the option to increase the facility size by up to an additional $750 million, subject to lender commitments and customary conditions, and can also extend the maturity date by one year. The new credit facility offers competitive interest rates based on Agilent's senior debt credit ratings. At its current ratings, the applicable margin for alternate base rate loans is 0.000%, and for Term Rate or SONIA rate loans, it is 0.910%. Additionally, Agilent will pay a quarterly facility fee of 0.090% on the total commitments, amounting to approximately $1.35 million annually at current ratings. The agreement includes standard covenants and financial covenants, such as a maximum ratio of adjusted consolidated financial indebtedness to consolidated capitalization of 0.65 to 1.00.
Key Highlights
- 1Agilent Technologies entered into a new $1.5 billion, five-year unsecured credit facility maturing on June 7, 2028.
- 2The facility replaces a prior credit agreement, enhancing financial flexibility for general corporate purposes.
- 3Option to increase the facility by up to $750 million and extend maturity by one year, subject to certain conditions.
- 4Interest rates are variable, linked to the company's credit ratings, with a 0.000% margin for alternate base rate loans and 0.910% for Term Rate/SONIA loans at current ratings.
- 5Annual facility fee of 0.090% on commitments (approx. $1.35 million at current ratings) will be paid.
- 6Includes customary affirmative and negative covenants, with a key financial covenant limiting adjusted debt to capitalization ratio to 0.65:1.00.