Summary
Fastenal Company (FAST) announced on May 5, 2015, the execution of a new $500,000,000 unsecured revolving credit facility with Wells Fargo Bank, National Association, replacing its existing credit agreement. This facility, set to expire on March 1, 2018, includes subfacilities for letters of credit and swing line loans, and is guaranteed by Fastenal's material domestic subsidiaries. The new agreement provides Fastenal with enhanced financial flexibility and demonstrates the company's continued access to capital markets. In addition to the new credit facility, Fastenal's board of directors authorized the repurchase of an additional 4,000,000 shares of common stock. This follows the recent exhaustion of a prior authorization and indicates management's confidence in the company's financial position and its commitment to returning capital to shareholders. These developments are significant for investors, highlighting Fastenal's strategic financial management and shareholder-friendly capital allocation policies.
Key Highlights
- 1Entered into a new $500 million unsecured revolving credit facility with Wells Fargo, replacing the prior agreement.
- 2The new credit facility has a maturity date of March 1, 2018.
- 3Includes a $55 million letter of credit subfacility and a $25 million uncommitted swing line loan subfacility.
- 4The credit agreement contains financial covenants, including a maximum consolidated total leverage ratio of 1.75 to 1.00 and a minimum EBITDA of $400,000,000.
- 5The company's board authorized an additional 4,000,000 share repurchase authorization.
- 6This new share repurchase authorization has no expiration date.