Summary
Air Products & Chemicals, Inc. (APD) announced on April 30, 2013, the execution of a new three-year revolving credit agreement totaling $2.5 billion. This agreement replaces a previous $2.17 billion credit facility and provides significant liquidity for the company and its subsidiaries, supporting its commercial paper program. The new credit facility is a key development for investors, demonstrating the company's access to capital and its ongoing commitment to maintaining a strong financial position to support its operations and growth strategies. Importantly, the credit agreement is unsecured and features a single financial covenant limiting total debt to capitalization. As of the filing date, no borrowings had been drawn under this new facility, indicating a proactive approach to financial management and a healthy existing liquidity position. The termination of the prior agreement incurred no penalties, suggesting a smooth transition and efficient refinancing.
Key Highlights
- 1Execution of a new three-year, $2.5 billion revolving credit agreement.
- 2The new credit facility replaces a prior $2.17 billion agreement.
- 3The agreement provides liquidity for APD and its subsidiaries.
- 4Supports the company's commercial paper program.
- 5The credit facility is senior unsecured debt.
- 6Features a single financial covenant: maximum total debt to capitalization ratio.
- 7No borrowings were outstanding under the previous agreement upon termination, and no penalties were incurred.