8-KMaterial AgreementsFinancial EventsExhibits & Filings

Edwards Lifesciences Corp 8-K Report, Material Agreement (Apr 30, 2018)

Filed April 30, 2018For Securities:EW

Summary

Edwards Lifesciences Corporation (EW) has executed a new Five-Year Credit Agreement, effective April 30, 2018, replacing its previous 2014 credit facility. This new agreement provides a $750 million multi-currency unsecured revolving credit facility, with the option to increase it by an additional $250 million. The terms include improved pricing and other favorable conditions compared to the prior agreement, which was terminated concurrently. This refinancing demonstrates proactive financial management by Edwards Lifesciences, ensuring access to a substantial credit line for general corporate purposes. The new facility is based on variable interest rates tied to LIBOR or a base rate, plus a margin linked to the company's leverage ratio. While the agreement contains standard covenants and events of default, including a leverage ratio requirement, it offers flexibility for future financing needs.

Key Highlights

  • 1New Five-Year Credit Agreement established on April 30, 2018, replacing the 2014 agreement.
  • 2Secured a $750 million multi-currency unsecured revolving credit facility.
  • 3Option to increase the credit facility by an additional $250 million.
  • 4Improved pricing and terms compared to the previous credit agreement.
  • 5Credit facility to be used for general corporate purposes.
  • 6Interest rates are variable, based on LIBOR or base rate plus a leverage-based margin.
  • 7Agreement includes customary covenants, representations, warranties, and events of default, notably a leverage ratio requirement.

Frequently Asked Questions

This 8-K filing announces the entry into a new material definitive agreement, specifically a Five-Year Credit Agreement, and the termination of a prior 2014 Credit Agreement. It details the terms of the new credit facility.

The new facility is a $750 million unsecured revolving credit facility, valid for five years. It is multi-currency and has an option for an additional $250 million increase. Interest rates are variable, based on LIBOR or a base rate plus a leverage-sensitive margin.

The company entered into the new agreement as part of a planned refreshment of its bank credit facility. The new agreement offers improved pricing and other terms compared to the previous one.

The Credit Agreement includes a requirement for the company to comply with a leverage ratio. Failure to do so could lead to an event of default, potentially resulting in all loans and obligations becoming due and payable and the facility being terminated.