Summary
Edison International (EIX) filed an 8-K on December 21, 2005, to disclose the execution of an Amended and Restated Credit Agreement. This agreement, effective December 15, 2005, significantly enhances the company's financial flexibility by increasing its revolving credit facility from $750 million to $1.0 billion. The termination date has been extended to December 15, 2010, with potential for further extension, providing a longer-term borrowing capacity.
Key Highlights
- 1Increased revolving credit facility to $1.0 billion from $750 million.
- 2Extended the termination date of the credit facility to December 15, 2010, with an option for extension.
- 3Removed the interest coverage ratio covenant, potentially offering more financial flexibility.
- 4Amended fee structure for the credit facility.
- 5Credit facility intended for general corporate purposes.
- 6Agreement entered into on December 15, 2005.
Frequently Asked Questions
The primary purpose of this 8-K filing is to report Edison International's entry into an Amended and Restated Credit Agreement, which modifies the terms and increases the size of its revolving credit facility.
The new credit agreement provides Edison International with greater financial flexibility by increasing its borrowing capacity to $1.0 billion and extending the facility's term to December 15, 2010. The removal of the interest coverage ratio covenant is also a significant benefit, potentially easing financial restrictions.
Key changes include an increase in the revolving credit facility to $1.0 billion, removal of the interest coverage ratio covenant, amendments to the fee structure, and an extended termination date to December 15, 2010.
Edison International expects to use the credit facility for general corporate purposes.