Summary
Altria Group, Inc. (MO) has entered into a new senior unsecured 364-day revolving credit agreement totaling $1.0 billion, effective March 31, 2006. This new facility replaces a similar expiring agreement and will remain in place until March 30, 2007. The credit line is intended for general corporate purposes and to support the company's commercial paper issuances, providing Altria with significant liquidity. Importantly, the company had no outstanding borrowings under its credit agreements as of the filing date, indicating a strong current cash position. This new agreement underscores Altria's proactive approach to managing its short-term financing needs and maintaining financial flexibility. The inclusion of a covenant requiring an earnings to fixed charges ratio of at least 2.5 to 1 demonstrates a commitment to financial health. Investors should note that this $1.0 billion credit facility complements Altria's existing 5-year revolving credit agreement, ensuring robust access to funding.
Key Highlights
- 1Altria entered into a new $1.0 billion senior unsecured 364-day revolving credit agreement on March 31, 2006.
- 2The new agreement matures on March 30, 2007, and replaces a similar expiring facility.
- 3The credit line is designated for general corporate purposes and to support commercial paper issuances.
- 4As of March 31, 2006, Altria had no borrowings outstanding under its credit agreements, indicating no immediate reliance on this facility.
- 5The agreement includes a financial covenant requiring an earnings to fixed charges ratio of not less than 2.5 to 1.
- 6Altria's existing 5-year revolving credit agreement remains in place, providing additional financial flexibility.