8-KFinancial EventsExhibits & Filings

Keysight Technologies, Inc. 8-K Report, Financial Obligation (Aug 4, 2021)

Filed August 4, 2021For Securities:KEYS

Summary

Keysight Technologies, Inc. (KEYS) announced on August 4, 2021, the execution of an Amended and Restated Credit Agreement, effective July 30, 2021. This agreement establishes a new $750 million unsecured revolving credit facility with a five-year term, maturing on July 30, 2026. The facility also includes an accordion feature, allowing Keysight to increase commitments by up to an additional $250 million under certain conditions. This refinancing provides Keysight with enhanced financial flexibility and liquidity. The amendment and restatement of the prior 2017 credit agreement indicate a proactive approach to managing the company's capital structure. Investors should note the inclusion of customary covenants and financial ratio requirements, which are standard for such credit facilities and designed to ensure the company's ongoing financial health.

Key Highlights

  • 1Keysight Technologies entered into an Amended and Restated Credit Agreement on July 30, 2021.
  • 2A new $750 million unsecured revolving credit facility has been established.
  • 3The credit facility has a five-year term, expiring on July 30, 2026.
  • 4The agreement allows for potential increases in credit commitments by up to $250 million.
  • 5The credit facility replaces the previous agreement dated February 15, 2017.
  • 6The agreement contains customary affirmative and negative covenants, including financial ratio maintenance.
  • 7Breach of covenants could lead to outstanding indebtedness being declared immediately due and payable.

Frequently Asked Questions

This filing announces Keysight Technologies' entry into an Amended and Restated Credit Agreement, which establishes a new $750 million unsecured revolving credit facility. This provides the company with significant borrowing capacity and financial flexibility.

The new revolving credit facility has a base amount of $750 million. Additionally, Keysight has the option to increase the total commitments by up to $250 million under certain conditions, bringing the potential total borrowing capacity to $1 billion.

The new five-year unsecured revolving credit facility will expire on July 30, 2026, subject to potential extensions under specific circumstances outlined in the agreement.

Yes, the Amended and Restated Credit Agreement includes customary affirmative and negative covenants. These covenants place restrictions on Keysight's ability to create liens on assets and on its subsidiaries' ability to incur debt. The company is also required to maintain compliance with specified financial ratios. Failure to comply could result in outstanding debt being accelerated.