Summary
Becton, Dickinson and Company (BDX) has entered into a second amended and restated credit agreement that enhances its financial flexibility. This agreement, effective January 25, 2023, restates and amends its previous credit facility, providing the company with a $2.75 billion senior unsecured revolving credit facility maturing in September 2026. The facility includes subfacilities for letters of credit and swingline loans, and can be increased by an additional $500 million upon lender commitment, potentially reaching $3.25 billion. This updated credit facility is designed to support BDX's general corporate purposes and offers flexibility in managing its liquidity. Key financial covenants include a maximum Leverage Ratio of 4.25:1.00, with a slightly higher threshold of 4.75:1.00 allowed for four quarters following a material acquisition. The agreement also outlines customary covenants and events of default, with provisions for acceleration and termination of commitments in such events. The company's obligations are guaranteed by BD Euro Finance.
Key Highlights
- 1BDX entered into a second amended and restated credit agreement on January 25, 2023.
- 2The new agreement provides a $2.75 billion senior unsecured revolving credit facility, maturing in September 2026.
- 3The facility can be increased by up to $500 million, bringing the potential total to $3.25 billion.
- 4Borrowings are for general corporate purposes, and BD Euro Finance is an authorized borrower.
- 5Interest rates are benchmarked on Term SOFR and are subject to BDX's credit ratings.
- 6Key financial covenants include a maximum Leverage Ratio of 4.25:1.00 (or 4.75:1.00 post-acquisition).
- 7The agreement includes standard covenants, events of default, and guarantees from BDX for borrower obligations.