8-KMaterial AgreementsFinancial EventsExhibits & Filings

DOVER Corp 8-K Report, Material Agreement (Sep 14, 2004)

Filed September 14, 2004For Securities:DOV

Summary

Dover Corporation (DOV) has entered into a new $600 million five-year unsecured revolving credit facility, replacing its previous credit lines. This new facility, effective September 8, 2004, provides the company with enhanced financial flexibility and a longer-term liquidity backstop for its commercial paper program. The credit facility has a maturity date of September 8, 2009, and includes an option to increase commitments by up to $150 million. The company has not drawn on this facility as of the filing date and intends to continue using its commercial paper program. The agreement includes standard covenants such as limitations on asset liens, consolidations, mergers, asset sales, and changes in business lines. It also requires Dover to maintain a minimum interest coverage ratio and adhere to a specified total debt to net worth percentage. The terms and conditions are largely consistent with the prior facilities, indicating a stable, albeit extended, financial arrangement for the company.

Key Highlights

  • 1Dover Corporation entered into a $600 million, five-year unsecured revolving credit facility on September 8, 2004.
  • 2The new facility replaces a 364-day and a 3-year credit facility, providing a longer maturity profile.
  • 3The facility is intended as a liquidity backstop for Dover's commercial paper program.
  • 4Commitments under the credit facility can be increased by up to $150 million.
  • 5As of September 13, 2004, no funds had been drawn from the new credit facility.
  • 6The agreement includes customary covenants, financial ratios (interest coverage, debt-to-net worth), and events of default.
  • 7The credit facility matures on September 8, 2009.

Frequently Asked Questions

The primary purpose of the new $600 million, five-year credit facility is to serve as a liquidity backstop for Dover Corporation's commercial paper program, ensuring the company has access to funds if needed.

The new facility has a principal amount of $600 million, the same as the aggregate principal amount of the two prior facilities it replaces. However, it offers a longer five-year term, compared to the previous 364-day and 3-year terms, providing greater financial stability and extended maturity.

As of September 13, 2004, Dover Corporation had not drawn any funds under the new $600 million credit facility. The company also indicated it did not anticipate doing so.

The credit agreement imposes standard covenants, including limitations on the company's ability to create liens on assets, engage in certain mergers or asset sales, and alter existing lines of business. Additionally, Dover must maintain a minimum interest coverage ratio and not exceed a stated total debt to consolidating net worth percentage while amounts remain outstanding.