Summary
Emerson Electric Co. (EMR) announced on March 16, 2005, that it entered into a new $1 billion five-year revolving credit facility, the "2005 Facility," effective March 11, 2005. This new facility replaces a prior short-term facility of approximately $917 million and extends its maturity to March 10, 2010. The Company also amended its existing $1.83 billion revolving credit facility, dated March 12, 2004, to align with the terms of the new facility, with its maturity set for March 12, 2009. Importantly, both facilities are currently undrawn, with no outstanding loans or letters of credit. Emerson Electric has no immediate intention to utilize these facilities but maintains them for general corporate purposes, including supporting commercial paper borrowings. The unsecured nature of these facilities, along with their flexibility in currency and loan types, provides the company with significant financial flexibility. The agreements include standard covenants and events of default, such as material debt non-payment and change of control provisions.
Key Highlights
- 1Emerson Electric entered into a new $1 billion, five-year revolving credit facility (the "2005 Facility") effective March 11, 2005, maturing March 10, 2010.
- 2The new 2005 Facility replaces a prior facility of approximately $917 million.
- 3The Company amended its existing $1.83 billion revolving credit facility (the "2004 Facility") to conform to the 2005 Facility, with a maturity of March 12, 2009.
- 4There are no outstanding loans or letters of credit under either the new or amended facilities.
- 5Emerson Electric has no current intention to borrow under these facilities but keeps them for general corporate purposes, including commercial paper support.
- 6The facilities are unsecured and offer flexibility in loan types (syndicate, swingline, competitive bid) and currencies.
- 7The credit agreements include customary representations, warranties, covenants, and events of default.