01—Abstract
Summary
Summary of the 8-K filed March 26, 2025. Cited figures are marked; the original filing is the authoritative source.
Hubbell Incorporated entered into a five-year, $1.0 billiona committed unsecured revolving credit agreement on March 25, 2025, with a syndicate of lenders and JPMorgan Chase Bank, N.A. as administrative agent.
The facility is maintained for general corporate purposes, including support for commercial paper issuance, and may be increased to an aggregate amount of up to $1.5 billionb. It includes a $50.0 million sub-limit for letters of credit, and loans and letters of credit to the foreign subsidiary borrowers may not exceed $100.0 million in total. Revolving loans are available in U.S. dollars, euro, pounds sterling, Canadian dollars and Swiss francs, and dollar loans bear interest at either the Alternate Base Rate or Term SOFR Rate plus an applicable margin tied to the Company's credit ratings.
All revolving loans are due March 25, 2030, with up to two one-year maturity extensions available. The agreement includes a financial covenant requiring the ratio of total indebtedness to total capitalization not to exceed 65% at each fiscal quarter-end. Events of default include failure to pay principal, covenant breaches, failure to pay debt obligations over $100 millionc, and a change of control; a default would allow lenders to terminate commitments and accelerate outstanding loans.
In connection with entering the new facility, Hubbell terminated all commitments under its existing Credit Agreement dated March 12, 2021, which was among the Company, Hubbell Power Holdings S.à r.l., Harvey Hubbell Holdings S.à r.l., the lenders and JPMorgan Chase Bank, N.A. as administrative agent. The filing also lists the full credit agreement as Exhibit 10.1.
02—Key points
Key Highlights
- Entered a five-year, $1.0 billion committed unsecured revolving credit facility dated March 25, 2025, administered by JPMorgan Chase Bank, N.A.
- Facility can be increased to an aggregate of up to $1.5 billion under the agreement's terms.
- Revolving loans due March 25, 2030, with up to two one-year maturity extensions available.
- Financial covenant requires the ratio of total indebtedness to total capitalization to be no greater than 65% at each fiscal quarter-end.
- Facility supports general corporate purposes, including backstop for commercial paper issuance, with a $50.0 million letter of credit sub-limit and a $100.0 million cap on loans and letters of credit to foreign subsidiary borrowers.
- Hubbell terminated all commitments under its existing Credit Agreement dated March 12, 2021, in connection with the new facility.
- Cross-default triggers include debt obligations in excess of $100 million and a change of control of the Company.
03—Questions
Frequently Asked Questions
How large is the new credit facility and can it grow?
The new revolving credit agreement provides $1.0 billion of committed unsecured revolving credit. Commitments may be increased to an aggregate amount not to exceed $1.5 billion.
When does the new revolving credit facility mature?
All revolving loans outstanding are due and payable on March 25, 2030. The agreement provides for up to two one-year maturity extensions.
What financial covenant applies to the facility?
As of the last day of each fiscal quarter, the ratio of total indebtedness to total capitalization must not be greater than 65%.
What happened to Hubbell's existing credit agreement?
In connection with entering the Revolving Credit Agreement, Hubbell terminated all commitments under its existing Credit Agreement dated March 12, 2021, which included its subsidiaries Hubbell Power Holdings S.à r.l. and Harvey Hubbell Holdings S.à r.l.
Which currencies and interest rates apply to borrowings?
Revolving loans are available in U.S. dollars, euro, pounds sterling, Canadian dollars and Swiss francs. Dollar-denominated loans may bear interest at the Alternate Base Rate or Term SOFR Rate, plus an applicable margin based on the Company's credit ratings.
04—Continue