8-KMaterial AgreementsFinancial EventsOther Events+1

TechnipFMC plc 8-K Report, Material Agreement (May 21, 2020)

Filed May 21, 2020For Securities:FTI

Summary

TechnipFMC plc (FTI) announced on May 21, 2020, that it has secured significant new liquidity sources to strengthen its financial position. The company entered into agreements to establish a European commercial paper program under the Bank of England's COVID Corporate Financing Facility (CCFF), allowing for the issuance of short-term, unsecured commercial paper notes up to a principal amount of £600 million. This facility, guaranteed by subsidiary FMC Technologies, Inc., provides additional flexibility for managing working capital and potentially reducing borrowing costs or refinancing existing debt. In addition to the CCFF program, TechnipFMC has also established a new €500 million senior unsecured revolving credit facility with HSBC France. This six-month facility, with options for extensions, offers further borrowing capacity and is subject to customary covenants and financial conditions. These actions collectively demonstrate the company's proactive approach to ensuring financial resilience and maintaining operational flexibility during a period of economic uncertainty.

Key Highlights

  • 1Secured £600 million in potential liquidity through the Bank of England's COVID Corporate Financing Facility (CCFF) via a commercial paper program.
  • 2Entered into a new €500 million senior unsecured revolving credit facility with HSBC France.
  • 3The CCFF program allows for the issuance of short-term (up to 364 days) unsecured commercial paper notes.
  • 4The commercial paper notes will be guaranteed by subsidiary FMC Technologies, Inc.
  • 5The new credit facilities are intended to provide additional liquidity for working capital and general corporate purposes.
  • 6The company may use the CCFF program to reduce existing debt or decrease overall borrowing costs.

Frequently Asked Questions

The primary purpose of these new credit facilities is to enhance TechnipFMC's liquidity and financial flexibility. The CCFF program and the revolving credit facility provide additional sources of funding for working capital needs, general corporate purposes, and potentially to reduce existing debt or lower borrowing costs.

TechnipFMC can access up to £600 million through the COVID Corporate Financing Facility (CCFF) commercial paper program and has established a €500 million senior unsecured revolving credit facility. The total potential funding across these facilities is substantial.

Under the CCFF program, the commercial paper notes will have maturities varying up to 364 days. The new revolving credit facility is initially for six months but can be extended for two additional three-month periods.

Yes, the commercial paper notes issued under the CCFF program will be guaranteed by TechnipFMC's subsidiary, FMC Technologies, Inc. The revolving credit facility involves TechnipFMC plc and its subsidiary Technip Eurocash SNC as borrowers.