Summary
Bristol-Myers Squibb Company (BMY) has filed an 8-K report detailing the entry into a significant new credit facility. On August 5, 2005, the company, acting as a guarantor, entered into a $2.5 billion Single Currency Term Facility Agreement. This agreement allows its subsidiary, BMS Omega Bermuda Holdings Finance Ltd., to borrow funds, with Tranche A available for up to $2 billion maturing in August 2010, and Tranche B for up to $500 million maturing in August 2007. The primary purpose of these borrowings is for general corporate purposes.
Key Highlights
- 1BMY entered into a $2.5 billion Single Currency Term Facility Agreement on August 5, 2005.
- 2The facility involves subsidiary BMS Omega Bermuda Holdings Finance Ltd. as the borrower.
- 3The loan is structured into two tranches: Tranche A ($2 billion, maturing August 2010) and Tranche B ($500 million, maturing August 2007).
- 4Bristol-Myers Squibb Company itself is a guarantor of this facility.
- 5Other subsidiaries, including BMS Pharmaceuticals Netherlands Holdings B.V., also serve as guarantors.
- 6The borrowings are intended for general corporate purposes.
- 7The agreement includes standard covenants, restrictions, and events of default typical for such credit facilities.
Frequently Asked Questions
The primary purpose of this $2.5 billion Single Currency Term Facility Agreement is to provide funds for Bristol-Myers Squibb Company and its subsidiaries' general corporate purposes.
The borrower under this facility is BMS Omega Bermuda Holdings Finance Ltd., an indirect wholly-owned subsidiary of Bristol-Myers Squibb Company.
The facility has two tranches: Tranche A loans will mature on August 5, 2010, and Tranche B loans will mature on August 5, 2007. The availability periods for drawing down these tranches differ, with Tranche A available for 90 days after August 5, 2005, and Tranche B available through December 31, 2005.
Yes, the agreement contains customary mandatory prepayment requirements, representations, information covenants, affirmative and negative covenants, financial covenants, and events of default. These include limitations on consolidation, mergers, sales of assets, incurrence of liens, sale and leaseback transactions, and maintaining specific financial ratios for the company and its subsidiaries.