8-KMaterial AgreementsExhibits & Filings

CURTISS WRIGHT CORP 8-K Report, Material Agreement (Oct 19, 2018)

Filed October 19, 2018For Securities:CW

Summary

Curtiss-Wright Corporation (CW) announced on October 19, 2018, that it has entered into a Fourth Amended and Restated Credit Agreement. This agreement significantly enhances the company's financial flexibility by extending its $500 million credit facility maturity from November 2019 to October 2023. The key updates include an increase in the total credit capacity. While the base facility remains $500 million, the accordion feature has been doubled from $100 million to $200 million, allowing for an expanded credit limit of up to $700 million. The agreement also streamlines covenants by eliminating one and maintains existing financial and debt covenants that are not more restrictive than the previous agreement. This updated credit line is intended to support working capital needs, internal growth, potential acquisitions, and general corporate purposes, positioning CW for future strategic actions.

Key Highlights

  • 1Curtiss-Wright (CW) amended and restated its credit agreement on October 17, 2018.
  • 2The existing $500 million credit facility maturity has been extended to October 2023 (from November 2019).
  • 3The accordion feature has been increased from $100 million to $200 million.
  • 4This expansion allows for a total potential credit capacity of up to $700 million.
  • 5The agreement eliminates one covenant, simplifying existing terms.
  • 6Financial and debt covenants remain similar and not more restrictive than the prior agreement.
  • 7Proceeds from the credit facility are earmarked for working capital, growth initiatives, acquisitions, and general corporate needs.

Frequently Asked Questions

The primary impact is enhanced financial flexibility and liquidity. The extension of the maturity date provides more long-term certainty, while the increased accordion feature significantly raises the company's potential borrowing capacity, enabling it to pursue strategic opportunities more readily.

The increased accordion feature from $100 million to $200 million effectively raises the total potential credit facility to $700 million. This greater capacity provides CW with more resources to fund potential acquisitions, invest in internal growth projects, or manage unforeseen working capital needs without immediately needing to raise equity or seek alternative, potentially more expensive, financing.

No, the filing indicates that the Amended and Restated Credit Agreement eliminates one covenant and otherwise provides for similar financial and debt covenants that are no more restrictive than those in the prior Credit Agreement. This suggests that the company's financial obligations and operational flexibility under these covenants remain largely unchanged or have even been slightly simplified.

The company plans to utilize the credit line for a range of strategic and operational purposes, including funding working capital requirements, supporting internal growth initiatives, financing potential future acquisitions, and addressing other general corporate needs. This diversified use case highlights the credit facility's role as a flexible tool for managing the company's ongoing business and strategic development.