Summary
Becton, Dickinson and Company (BD) announced on May 18, 2012, the entry into a new Five Year Credit Agreement, establishing a $1 billion senior unsecured revolving credit facility that matures in May 2017. This new facility replaces a prior agreement and offers flexibility, allowing BD to potentially access an additional $500 million, bringing the total possible financing to $1.5 billion. The funds are intended for general corporate purposes. Additionally, the filing notes a significant leadership change: Vincent A. Forlenza, currently CEO and President, will assume the additional role of Chairman of the Board effective July 1, 2012. This succession in leadership, coupled with the strengthened credit facility, provides insight into BD's financial and governance strategies.
Key Highlights
- 1BD entered into a new Five Year Credit Agreement on May 18, 2012.
- 2The new credit facility is a senior unsecured revolving facility totaling $1 billion, with an option to increase by $500 million for a maximum of $1.5 billion.
- 3The credit facility expires in May 2017.
- 4Borrowings under the new agreement are for general corporate purposes.
- 5The agreement replaces a prior $1 billion credit agreement from December 1, 2006, with no outstanding borrowings under the old agreement.
- 6A key financial covenant requires BD to maintain an interest expense coverage ratio of not less than 5-to-1.
- 7Vincent A. Forlenza will become Chairman of the Board in addition to his CEO and President roles, effective July 1, 2012.