01—Abstract
Summary
Summary of the 8-K filed September 19, 2024. Cited figures are marked; the original filing is the authoritative source.
Martin Marietta Materials, Inc. (NYSE: MLM) reported in this Form 8-K, filed September 19, 2024, that on September 18, 2024 it and its wholly-owned subsidiary, Martin Marietta Funding LLC ("MM Funding"), entered into the Sixteenth Amendment to its Credit and Security Agreement with Truist Bank, successor by merger to SunTrust Bank, as administrative agent.
The amendment extends the scheduled maturity of the facility to September 17, 2025 and removes the 0.10% per annum adjustment to Adjusted Term SOFR. The Credit Agreement is a $400,000,000a trade receivables securitization facility backed by trade receivables originated or acquired by the Corporation, which are sold or contributed to MM Funding. The facility may be increased to an amount not to exceed $500,000,000, subject to conditions including lenders providing the requisite commitments.
Effective with the amendment, MM Funding's borrowings bear interest at Adjusted Term SOFR plus 0.800%b, subject to change if the Administrative Agent determines Adjusted Term SOFR cannot be determined or SOFR no longer reflects lenders' cost of lending. The Credit Agreement includes an amortization event tied to a payment default or acceleration of one of the Corporation's material debt agreements. The full Sixteenth Amendment, including a conformed copy of the Credit Agreement, is filed as Exhibit 10.01.
02—Key points
Key Highlights
- Entered into the Sixteenth Amendment to the Credit and Security Agreement on September 18, 2024, with Truist Bank as administrative agent.
- Scheduled maturity of the trade receivables securitization facility extended to September 17, 2025.
- The 0.10% per annum adjustment to Adjusted Term SOFR was removed.
- Facility size is $400,000,000, expandable to an amount not to exceed $500,000,000, subject to conditions.
- MM Funding borrowings bear interest at Adjusted Term SOFR plus 0.800% effective with the amendment.
- The agreement includes an amortization event triggered by a payment default or acceleration of one of the Corporation's material debt agreements.
- Full amendment and conformed Credit Agreement filed as Exhibit 10.01.
03—Questions
Frequently Asked Questions
What did Martin Marietta change in its receivables facility?
The Sixteenth Amendment extended the scheduled maturity date to September 17, 2025 and removed the 0.10% per annum adjustment to Adjusted Term SOFR.
How large is the facility and can it grow?
The facility is $400,000,000 and may be increased to an amount not to exceed $500,000,000, subject to certain conditions, including lenders providing the requisite commitments.
What interest rate applies to borrowings under the facility?
Effective with the Sixteenth Amendment, MM Funding's borrowings bear interest at Adjusted Term SOFR plus 0.800%, which is subject to change if the Administrative Agent determines Adjusted Term SOFR cannot be determined or SOFR no longer reflects the lenders' cost of lending.
What assets back the facility?
The facility is backed by trade receivables originated by the Corporation or certain of its subsidiaries, or acquired by the Corporation, which are then sold or contributed to MM Funding.
Are there any amortization triggers investors should note?
Yes. The Credit Agreement includes an amortization event related to a payment default or acceleration of one of the Corporation's material debt agreements.
04—Continue