Summary
Emerson Electric Co. (EMR) announced on May 1, 2014, the establishment of a new $3.5 billion, five-year revolving credit facility, referred to as the '2014 Facility', effective April 30, 2014. This new facility, which matures in April 2019, replaces a previous $2.75 billion facility. The primary purpose of this action is to bolster the company's financial flexibility and support general corporate needs, including potential commercial paper borrowings.
Key Highlights
- 1Emerson Electric entered into a new $3.5 billion, five-year revolving credit facility on April 30, 2014.
- 2The new facility expires in April 2019, extending its availability by one year compared to the previous facility.
- 3This new credit facility replaces a prior $2.75 billion, four-year revolving credit facility dated December 16, 2010.
- 4As of the filing date, there were no outstanding loans or letters of credit drawn under the new facility.
- 5The company stated it has no intention of incurring borrowings under this or prior similar facilities.
- 6The facility is unsecured and supports general corporate purposes, including commercial paper borrowings.
- 7The credit agreement contains standard representations, warranties, covenants, and events of default, typical for such financial arrangements.
Frequently Asked Questions
The new $3.5 billion revolving credit facility is intended to enhance Emerson Electric's financial flexibility and provide support for general corporate purposes, which may include commercial paper borrowings.
The new facility is larger ($3.5 billion vs. $2.75 billion) and has a longer term (five years expiring in April 2019 vs. four years expiring in December 2014), offering greater borrowing capacity and extended availability.
No, the filing explicitly states that there are no outstanding loans or letters of credit under the new 2014 Facility as of the filing date. The company also indicated no intention to draw on it.
The filing indicates no current borrowings, and the facility is unsecured. While there are facility fees and customary covenants, the immediate financial obligation is limited to these fees unless the company chooses to draw on the facility.