Summary
This 8-K filing by Cummins Inc. (CMI) announces the entry into an amended and restated credit agreement, effective November 13, 2015. The new credit agreement establishes a revolving credit facility of up to $1.75 billion, maturing on November 13, 2020. This facility is unsecured, and borrowings are guaranteed by the parent company for any subsidiary borrowers. This action effectively replaces the prior credit agreement, which was set to mature in 2018, though no amounts were outstanding under the previous agreement. The new agreement includes provisions for various interest rate options tied to benchmark rates and Cummins' credit rating, which at the time of filing was rated A2 by Moody's and A+ by S&P.
Key Highlights
- 1Cummins Inc. entered into a new $1.75 billion unsecured credit agreement.
- 2The new agreement matures on November 13, 2020.
- 3This facility replaces a prior credit agreement dated November 9, 2012.
- 4No borrowings were outstanding under the previous credit agreement.
- 5Interest rates are variable, based on prime rate, federal funds rate, or Adjusted LIBO Rate plus a spread.
- 6The spread on the Adjusted LIBO Rate depends on Cummins' credit rating (currently A2/A+).
- 7The agreement includes standard financial and other covenants.