Summary
Air Products & Chemicals, Inc. (APD) filed an 8-K on July 12, 2010, reporting the execution of a new $2 billion revolving credit agreement on July 8, 2010. This new three-year credit facility replaces an earlier $1.45 billion agreement and is designed to provide significant liquidity for the company and its subsidiaries. The facility is unsecured and supports the company's commercial paper program. A key financial covenant under this new agreement is a maximum ratio of total debt to EBITDA, which provides a measure of financial flexibility and leverage control for investors to monitor.
Key Highlights
- 1New $2 billion, three-year revolving credit agreement executed on July 8, 2010.
- 2The new agreement replaces a prior $1.45 billion credit facility.
- 3The facility is designed to provide significant liquidity for APD and its subsidiaries.
- 4It supports the company's commercial paper program.
- 5The credit agreement is senior unsecured debt.
- 6The only financial covenant is a maximum ratio of total debt to EBITDA.
- 7No borrowings were outstanding under the previous agreement, and no early termination penalties were incurred.