What is the significance of the Amended and Restated Credit Agreement for Corning?

The Amended and Restated Credit Agreement is significant because it increases Corning's total borrowing capacity to $1.125 billion, provides access to multiple currencies, and extends the maturity date to 2011 with extension options. This suggests the company is securing robust financial resources for its operations and strategic initiatives.

What are the key financial restrictions or requirements imposed by the new credit agreement?

The agreement imposes specific financial covenants that Corning must adhere to. These include maintaining a consolidated debt for borrowed money to consolidated total capital ratio of no greater than 0.50 to 1.00, and a consolidated adjusted EBITDA to consolidated interest expense ratio of not less than 3.50 to 1.00. There are also restrictions on liens, subsidiary debt, mergers, and dividend payments.

Are there any immediate outstanding borrowings or letters of credit under this new agreement?

As of the filing date, there were no amounts outstanding under the Amended and Restated Credit Agreement, although letters of credit totaling $43,638,000 had already been issued.

GLW 8-K: Material Agreements & Financial Events

Summary

Corning Incorporated (GLW) filed an 8-K on November 27, 2006, to disclose the entry into an Amended and Restated Credit Agreement dated November 21, 2006. This agreement significantly modifies the company's existing credit facility, increasing its overall borrowing capacity and extending its maturity. This action indicates Corning's proactive approach to managing its capital structure and ensuring financial flexibility.

Key Highlights

1Corning entered into an Amended and Restated Credit Agreement on November 21, 2006, replacing its March 17, 2005 agreement.
2The new credit facility has a maximum borrowing capacity of $1,125,000,000, with an additional $125,000,000 option to increase the commitment amount.
3Borrowings are available in multiple currencies: Dollars, Sterling, Yen, and Euros.
4The agreement terminates on November 21, 2011, with potential one-year extensions available on November 21, 2007, and November 21, 2008.
5Key financial covenants include maintaining a debt-to-capital ratio not exceeding 0.50:1.00 and an EBITDA-to-interest expense ratio of at least 3.50:1.00.
6The agreement also includes customary covenants such as periodic financial reporting, limitations on liens, subsidiary indebtedness, mergers, and dividend restrictions.
7Corning's wholly-owned subsidiaries can borrow under this facility, with loans guaranteed by the parent company.

CORNING INC /NY 8-K Report, Material Agreement (Nov 27, 2006)

Summary

Key Highlights

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