Summary
Honeywell International Inc. (HON) filed an 8-K on November 30, 2005, reporting the establishment of a euro-commercial paper program. This program, effective November 23, 2005, allows the company and its designated subsidiaries to issue euro-commercial paper notes with a maximum aggregate outstanding amount of EUR 1,000,000,000, or its equivalent in other currencies. The program provides Honeywell with significant financial flexibility to manage its short-term liquidity needs. The notes have maturities up to 183 days and are senior unsecured obligations, with Honeywell International Inc. providing guarantees for notes issued by its subsidiaries. The absence of restrictive financial covenants in the program suggests a straightforward and efficient funding mechanism for the company.
Key Highlights
- 1Establishment of a EUR 1 billion euro-commercial paper program.
- 2The program allows for issuance of notes with maturities up to 183 days.
- 3Notes are senior unsecured obligations of the issuing entities.
- 4Honeywell International Inc. will guarantee notes issued by its subsidiaries.
- 5The program offers flexibility to issue notes in alternative currencies equivalent to EUR 1 billion.
- 6Dealers include Barclays Bank PLC, Citibank International plc, Deutsche Bank AG, and The Royal Bank of Scotland plc.
- 7The program contains no restrictive financial or other covenants.