Summary
Cummins Inc. (CMI) has entered into a new 364-day credit agreement providing up to $1.0 billion in revolving and swingline loans, maturing on September 4, 2018. This unsecured facility offers financial flexibility, allowing for potential increases in borrowing capacity by an additional $500 million under certain conditions and the option to convert revolving loans into term loans. The agreement is part of the company's ongoing financial strategy, supplementing its existing credit facilities.
Key Highlights
- 1Entered into a 364-day credit agreement for up to $1.0 billion in revolving and swingline loans.
- 2The new credit facility is unsecured.
- 3The agreement matures on September 4, 2018.
- 4Potential to increase borrowing capacity by up to $500 million.
- 5Option to convert revolving loans into term loans maturing one year after the commitment termination date.
- 6Borrowings will bear interest based on various benchmarks including prime rate, federal funds rate, overnight bank funding rate, or Adjusted LIBO Rate, with margins dependent on credit ratings.
- 7The company's current senior unsecured long-term debt ratings are A2 (Moody's) and A+ (S&P).