Summary
AMETEK, Inc. (AME) filed an 8-K on March 14, 2016, to report the amendment and restatement of its senior unsecured credit agreement. The key development is the establishment of a new five-year revolving credit facility totaling $850 million, maturing on March 10, 2021. This new facility replaces the previous $700 million credit facility which was set to expire in December 2018. The increased size and extended maturity provide AMETEK with enhanced financial flexibility for future growth initiatives, including working capital needs, acquisitions, and refinancing existing debt. The amended credit agreement allows for borrowings in U.S. Dollars and other agreed currencies, with provisions for Letters of Credit up to $100 million and foreign currency borrowings up to $550 million. An expansion feature allows for an additional $300 million, underscoring the company's commitment to maintaining robust liquidity. The agreement includes customary covenants and events of default, typical for such senior unsecured facilities.
Key Highlights
- 1AMETEK amended and restated its credit agreement, establishing a new $850 million revolving credit facility.
- 2The new facility has a five-year term, maturing on March 10, 2021, extending from the previous agreement's expiration.
- 3The revolving credit facility's size increased from $700 million to $850 million.
- 4Proceeds are available for working capital, acquisitions, and general corporate purposes, including debt refinancing.
- 5The agreement allows for up to $100 million in Letters of Credit and up to $550 million for foreign currency borrowings.
- 6An expansion feature provides the ability to increase the facility by an additional $300 million.
- 7The company's leverage ratio will determine the applicable interest margin on borrowings.