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.