Summary
Aon Corporation (AON) has filed an 8-K report detailing the refinancing of its credit facilities. On October 15, 2010, the company entered into a new €650 million multi-currency revolving loan credit facility, referred to as the '2010 Euro Facility'. This new facility replaces the previous €650 million credit line established in 2005, which was officially terminated effective October 18, 2010. The new facility is set to mature on October 15, 2015. The 2010 Euro Facility introduces specific financial covenants, including a minimum EBITDA to interest expense ratio of 4.0 to 1.0 and a maximum borrowings to EBITDA ratio of 3.0 to 1.0. These covenants provide investors with a clear indication of the company's ongoing commitment to maintaining a healthy debt service coverage and leverage profile. The report also discloses existing commercial relationships between Aon and the financial institutions involved in arranging and acting as agent for this new credit facility, as well as past and potential future services provided by Aon to these entities.
Key Highlights
- 1Aon Corporation entered into a new €650 million multi-currency revolving loan credit facility (2010 Euro Facility) on October 15, 2010.
- 2The new facility has a maturity date of October 15, 2015.
- 3The 2010 Euro Facility replaces the prior €650 million credit facility from 2005, which was terminated on October 18, 2010.
- 4Key financial covenants in the new facility include a minimum EBITDA to interest expense ratio of 4.0:1.0.
- 5Another key covenant is a maximum borrowings to EBITDA ratio of 3.0:1.0.
- 6The facility involves Citigroup Global Markets Limited, ING Bank N.V., and Barclays Capital as Arrangers, and Citibank International plc as Agent.
- 7The company acknowledges existing commercial relationships and potential service engagements with the involved financial institutions.