Summary
Bristol-Myers Squibb Company (BMY) filed an 8-K on January 30, 2019, primarily announcing the execution of two new revolving credit facility agreements, effective January 25, 2019. The company entered into a 364-day revolving credit facility agreement and a three-year revolving credit facility agreement, both of which are available for working capital and general corporate purposes. These new agreements effectively replaced an existing 364-day credit facility that was terminated concurrently and without penalty, as it remained undrawn. The new credit facilities provide Bristol-Myers Squibb with updated and extended borrowing capacity. The 364-day facility matures on January 24, 2020, while the three-year facility matures on January 25, 2022. Both agreements include interest rate options based on a base rate or Eurodollar rate, plus an applicable margin that varies with the company's public debt ratings. Importantly, neither facility contains financial covenants, offering flexibility to the company.
Key Highlights
- 1BMY entered into a new 364-day revolving credit facility agreement, maturing January 24, 2020.
- 2BMY also entered into a new three-year revolving credit facility agreement, maturing January 25, 2022.
- 3These new facilities replace an existing 364-day credit facility, which was terminated on January 25, 2019, without penalty as it was undrawn.
- 4Both new credit facilities are available for working capital and general corporate purposes.
- 5Interest rates are based on a choice of base rate or Eurodollar rate, plus an applicable margin determined by BMY's debt ratings.
- 6A key feature is the absence of financial covenants in both new credit agreements, providing operational flexibility.
- 7The company's U.S. and non-U.S. subsidiaries may borrow under these facilities, with all subsidiary borrowings guaranteed by Bristol-Myers Squibb.