8-KMaterial AgreementsFinancial EventsExhibits & Filings

CHURCH & DWIGHT CO INC /DE/ 8-K Report, Material Agreement (Dec 8, 2015)

Filed December 8, 2015For Securities:CHD

Summary

On December 4, 2015, Church & Dwight Co., Inc. (CHD) announced the execution of a new $1.0 billion unsecured revolving credit facility, replacing its prior $600 million facility. This significant increase in borrowing capacity provides the company with enhanced financial flexibility to support its strategic initiatives and growth opportunities. The new facility has a maturity date of December 4, 2020, and includes an option to increase the total facility size by an additional $600 million, subject to lender commitments. This move signals a strengthening of the company's financial position and its ability to access capital markets. The terms of the new credit agreement, including interest rates based on corporate credit ratings and leverage ratio covenants, indicate a well-managed financial structure. The termination of the previous credit agreement and the establishment of this larger facility are key strategic actions designed to optimize the company's capital structure and support its ongoing business operations.

Key Highlights

  • 1New $1.0 billion unsecured revolving credit facility executed on December 4, 2015.
  • 2Replaces the previous $600 million credit facility, increasing available borrowing capacity.
  • 3Facility has a maturity date of December 4, 2020.
  • 4Option to increase the credit facility by up to an additional $600 million.
  • 5Interest rates are tied to the Company's corporate credit rating and range from 0.875% to 1.75% (LIBOR) or 0% to 0.75% (Base Rate) plus applicable margin.
  • 6Maintains a leverage ratio covenant, not to exceed 3.50:1.00 (or 3.75:1.00 after a material acquisition).
  • 7The prior $600 million credit agreement dated December 19, 2014, was terminated in conjunction with the new facility.

Frequently Asked Questions

This filing reports on the entry into a new, larger material definitive agreement, specifically a $1.0 billion unsecured revolving credit facility, and the termination of a prior credit agreement.

The new facility significantly increases the company's borrowing capacity from $600 million to $1.0 billion, providing greater financial flexibility for operations, investments, and potential strategic growth initiatives. The option to further increase the facility also adds significant optionality.

The facility matures on December 4, 2020, and features interest rates based on either the adjusted LIBOR rate or a Base Rate, plus an applicable margin that varies with the company's credit rating. It also includes customary covenants and events of default, such as maintaining a specific leverage ratio.

The previous $600 million credit agreement was terminated because it was replaced by the new, larger and potentially more favorable $1.0 billion credit facility. All outstanding amounts under the old agreement were repaid upon termination.