Summary
Linde plc (LIN) announced the entry into a new, unsecured revolving credit agreement on March 26, 2019, which became effective on March 29, 2019. This agreement establishes a significant credit facility of $5 billion, with an option to increase it to $6.5 billion, providing substantial liquidity for general corporate purposes. The facility is guaranteed by the Company and Praxair, Inc., and includes various borrowing options in multiple currencies, letters of credit, and swingline loans. This new credit agreement replaces existing facilities for Praxair and Linde AG, indicating a strategic consolidation of the company's debt structure following its merger. The facility has a maturity date of March 26, 2024, with potential for two one-year extensions. Importantly, the agreement does not include a financial maintenance covenant, offering flexibility to the company, and as of the filing date, there were no outstanding borrowings against this new facility.
Key Highlights
- 1Linde plc entered into a $5 billion unsecured revolving credit agreement, effective March 29, 2019.
- 2The credit facility has the potential to be increased up to $6.5 billion.
- 3The agreement is available for general corporate purposes and allows borrowings in USD, GBP, EUR, and other agreed-upon currencies.
- 4The facility includes commitments for swingline loans ($200M USD, €100M EUR) and letters of credit/indemnities/guarantees ($600M).
- 5The credit agreement has an initial expiration date of March 26, 2024, with two one-year extension options.
- 6The credit agreement does not contain a financial maintenance covenant.
- 7Existing credit agreements for Praxair and Linde AG were terminated upon the effectiveness of this new agreement.