8-KMaterial AgreementsFinancial EventsExhibits & Filings

DOVER Corp 8-K Report, Material Agreement (Oct 27, 2005)

Filed October 27, 2005For Securities:DOV

Summary

Dover Corporation (DOV) announced on October 27, 2005, its entry into a new $1 billion, five-year unsecured revolving credit facility. This facility, effective October 26, 2005, replaces two prior credit lines totaling the same principal amount ($600 million and $400 million). The new credit agreement has similar terms and conditions to the facilities it supersedes and is primarily intended to serve as a liquidity backstop for the company's commercial paper program. Key features of the new credit facility include the potential for an additional $250 million increase in commitments during its term. The agreement allows for borrowings at either a Eurodollar/alternative currency rate based on LIBOR plus an applicable margin, or a base rate. Standard covenants and events of default are included, aligning with industry norms. Investors should note that this refinancing enhances Dover's liquidity management and financial flexibility.

Key Highlights

  • 1Dover Corporation entered into a new $1 billion, five-year unsecured revolving credit facility on October 26, 2005.
  • 2The new facility replaces two existing credit agreements totaling $1 billion ($600 million and $400 million).
  • 3The credit agreement has a maturity date of October 26, 2010.
  • 4The company has the option to increase the lenders' commitments by an additional $250 million during the term of the agreement.
  • 5The facility is primarily intended to provide liquidity back-up for Dover's commercial paper program.
  • 6Borrowing options include Eurodollar/alternative currency rates based on LIBOR or a base rate, with margins and fees tied to the company's senior unsecured debt rating.
  • 7The agreement contains customary covenants and events of default, similar to the previous facilities.

Frequently Asked Questions

The primary purpose of the new $1 billion credit facility is to serve as a liquidity backstop for Dover Corporation's commercial paper program, ensuring financial flexibility and stability.

This new $1 billion, five-year facility replaces two prior credit agreements ($600 million and $400 million) that also totaled $1 billion. The terms and conditions of the new agreement are substantially similar to those of the facilities it replaced.

The initial principal amount of the credit facility is $1 billion. Additionally, Dover has the option to increase the lenders' commitments by up to $250 million during the five-year term, potentially bringing the total available amount to $1.25 billion.

The commitments of the lenders under the new credit agreement will terminate on October 26, 2010, which is the Maturity Date. Any outstanding principal balance and accrued interest would be due on this date.