8-KMaterial AgreementsFinancial EventsExhibits & Filings

CORNING INC /NY 8-K Report, Material Agreement (Dec 16, 2010)

Filed December 16, 2010For Securities:GLW

Summary

Corning Incorporated (GLW) filed an 8-K on December 16, 2010, to announce the execution of an Amended and Restated Credit Agreement. This new agreement, effective December 16, 2010, replaces their existing credit facility from November 2006. A significant event noted is the full repayment of a $1,120,000,000 borrowing made by Corning Finance Luxembourg S.a r.l. on November 16, 2010, prior to the restatement. The Amended and Restated Credit Agreement establishes a new revolving credit facility with a maximum commitment amount of $1 billion, which can be increased by an additional $250 million. This facility is available in multiple currencies (Dollars, Sterling, Yen, Euros) to Corning and its wholly-owned subsidiaries. The agreement includes flexible interest rate options based on LIBOR or a base rate, with margins that adjust according to Corning's credit ratings. The facility is set to mature on December 16, 2015, with potential one-year extensions available.

Key Highlights

  • 1Corning Incorporated entered into a new Amended and Restated Credit Agreement effective December 16, 2010.
  • 2The existing Credit Agreement from November 21, 2006, has been amended, restated, and replaced.
  • 3A $1,120,000,000 borrowing under the previous agreement was repaid in full on December 16, 2010.
  • 4The new credit facility has a maximum commitment of $1,000,000,000, with an option to increase by $250,000,000.
  • 5Borrowings are available in U.S. Dollars, Sterling, Yen, and Euros.
  • 6Interest rates are based on LIBOR or a base rate plus a margin that varies with Corning's credit ratings.
  • 7The agreement has a termination date of December 16, 2015, with possible one-year extensions.

Frequently Asked Questions

The primary purpose of this 8-K filing is to inform investors about Corning Incorporated entering into a new Amended and Restated Credit Agreement, which replaces its previous credit facility.

The new credit facility has a maximum commitment amount of $1,000,000,000, and it includes an option to increase this amount by an additional $250,000,000.

The previous Credit Agreement dated November 21, 2006, was amended, restated, and effectively replaced by the new Amended and Restated Credit Agreement. Any outstanding obligations under the old agreement were repaid in full.

Key covenants include maintaining a debt-to-capital ratio not exceeding 0.50:1.00, an EBITDA-to-interest expense ratio of at least 3.50:1.00, and restrictions on liens, subsidiary debt, mergers, and dividend declarations. Corning must also provide periodic financial reports.