8-KMaterial AgreementsFinancial EventsOther Events+1

AMETEK INC/ 8-K Report, Material Agreement (Sep 27, 2011)

Filed September 27, 2011For Securities:AME

Summary

AMETEK, Inc. (AME) has filed an 8-K report detailing the establishment of a new $700 million revolving credit facility, replacing its previous $450 million facility which was set to expire in June 2012. This new five-year facility, with a maturity date of September 22, 2016, provides increased financial flexibility for the company. The proceeds from this credit facility are earmarked for general corporate purposes, including working capital needs, strategic acquisitions, and refinancing existing debt. The agreement allows for borrowings in U.S. Dollars and other currencies, with provisions for letters of credit and an expansion option, indicating AMETEK's proactive approach to managing its capital structure and supporting future growth initiatives.

Key Highlights

  • 1Establishment of a new $700 million, five-year revolving credit facility maturing September 22, 2016.
  • 2This new facility replaces the existing $450 million credit facility expiring in June 2012.
  • 3Proceeds available for working capital, acquisitions, and general corporate purposes, including debt refinancing.
  • 4The facility includes options for up to $100 million in Letters of Credit.
  • 5Allows for foreign currency borrowings up to the equivalent of $450 million.
  • 6Includes an expansion feature allowing for an additional $200 million.
  • 7The credit agreement includes customary covenants and events of default, typical for senior unsecured credit facilities.

Frequently Asked Questions

The new $700 million revolving credit facility is primarily intended to provide AMETEK with financial flexibility for working capital needs, strategic acquisitions, and other general corporate purposes, including refinancing existing debt. It effectively replaces an expiring credit line with a larger, longer-term facility.

The new facility is significantly larger, with a principal amount of $700 million compared to the previous $450 million. It also has a longer term, expiring in September 2016, as opposed to the previous facility which was due to expire in June 2012.

Key features include a $700 million aggregate principal amount, a five-year term, availability for U.S. Dollar and foreign currency borrowings (up to $450 million equivalent), an allowance for Letters of Credit (up to $100 million), and an expansion option (up to $200 million).

Yes, the credit agreement contains usual and customary covenants for senior unsecured credit facilities, including financial ratio requirements and restrictions on debt incurrence, liens, mergers, and acquisitions. It also outlines standard events of default.