Summary
W.W. Grainger, Inc. (GWW) has entered into a new, five-year syndicated revolving credit facility agreement, replacing its previous facility. The new credit facility provides access to up to $750 million, with an option to increase it to $1.125 billion, offering significant financial flexibility. This move demonstrates the company's proactive approach to managing its capital structure and ensuring liquidity for its operations and strategic initiatives. The new facility, which matures on October 6, 2022 (with a potential one-year extension), is unsecured and its terms, including interest rates and fees, are tied to the company's credit rating. Standard covenants and events of default are included, which are typical for such agreements. The termination of the previous credit facility has also been formally noted, marking a clean transition to the new financing arrangement.
Key Highlights
- 1W.W. Grainger, Inc. entered into a new $750 million syndicated revolving credit facility on October 6, 2017.
- 2The new facility has a five-year term, maturing on October 6, 2022, with an option for a one-year extension.
- 3The credit limit can be increased up to $1.125 billion, subject to obtaining additional commitments.
- 4This new facility replaces the company's prior $900 million unsecured revolving credit facility, which was set to mature in August 2018.
- 5The credit facility is unsecured, and its interest rates and fees are determined by the company's credit rating.
- 6The agreement includes customary representations, warranties, covenants, and events of default, with certain thresholds and exceptions.
- 7The company's subsidiaries are also borrowers under this facility, and their obligations are guaranteed by W.W. Grainger, Inc.