Summary
Linde plc announced on December 6, 2023, the entry into a new unsecured 364-day revolving credit agreement totaling $1.5 billion. This facility, with Bank of America, N.A. as administrative agent and a syndicate of lenders, provides Linde and certain subsidiaries with access to funds for general corporate purposes. The agreement allows for borrowings in various major currencies, including USD, Pounds Sterling, and Euros, with specific provisions for swingline loans. The credit agreement's structure is designed for flexibility, with the option to convert outstanding balances into term loans due one year after the commitment termination date. Notably, the agreement does not include a financial maintenance covenant, which is a positive signal for financial flexibility. As of the filing date, there were no outstanding borrowings under this new facility, indicating a proactive approach to liquidity management by Linde.
Key Highlights
- 1Linde plc entered into a $1.5 billion unsecured 364-day revolving credit agreement.
- 2The facility is available for general corporate purposes.
- 3The agreement allows borrowings in U.S. Dollars, Pounds Sterling, and Euros.
- 4Swingline loan commitments are also included for immediate liquidity needs.
- 5Borrowings will bear interest based on SOFR, EURIBOR, SONIA, or base rate plus a ratings-based margin.
- 6The credit agreement does not contain a financial maintenance covenant.
- 7No borrowings were outstanding under the agreement as of the filing date.