Summary
DOVER Corp (DOV) has announced the execution of a new $1 billion, five-year unsecured revolving credit facility, replacing a similar existing facility that had one year remaining. This strategic move extends the company's financial flexibility and liquidity back-up for its commercial paper program. The new credit facility, effective October 4, 2019, matures on October 4, 2024, and offers an accordion feature allowing for an additional $500 million in commitments. While the aggregate commitment amount remains the same, the extended term provides greater long-term operational support. The facility supports borrowings in multiple currencies and includes provisions for letters of credit up to a $250 million subcap. The terms and covenants are largely consistent with the previous agreement, including customary restrictions and a minimum interest coverage ratio of 3.00:1.00, indicating a stable financial management approach.
Key Highlights
- 1DOVER Corp entered into a new $1 billion, five-year unsecured revolving credit facility on October 4, 2019.
- 2The new facility replaces a prior credit facility with one year remaining, extending the maturity to October 4, 2024.
- 3The facility is intended to serve as primary liquidity back-up for the company's commercial paper program.
- 4An accordion feature allows for an increase in commitments by up to an additional $500 million during the term.
- 5The credit agreement permits borrowings in USD, EUR, GBP, CAD, and SEK, with a $250 million subcap for letters of credit.
- 6Covenants are substantially similar to the prior facility, including customary restrictions and a minimum interest coverage ratio of 3.00:1.00.
- 7Interest rates are variable, based on benchmark screen rates (e.g., LIBOR, EURIBOR) plus an applicable margin (0.805% to 1.20%) or an Alternate Base Rate for USD, with a facility fee ranging from 0.070% to 0.175%.