01—Abstract
Summary
Summary of the 8-K filed August 18, 2021. Cited figures are marked; the original filing is the authoritative source.
Altria Group, Inc. (MO) announced on August 18, 2021, a material definitive agreement related to its existing $3.0 billiona senior unsecured revolving credit facility.
The company entered into an Extension and Amendment No. 2 to its Credit Agreement, which primarily serves to extend the maturity date of this significant credit line. This amendment pushes the maturity from August 1, 2023, to August 1, 2024, providing Altria with an extended runway for this financial obligation. Beyond the maturity extension, the amendment also addresses important updates to provisions concerning successor interest rates to LIBOR, reflecting ongoing market shifts in financial benchmarks.
The core terms of the original credit agreement remain in effect, and this action is a strategic move to maintain financial flexibility and ensure continued access to its revolving credit facility for general corporate purposes. Investors should view this as a proactive measure to manage its debt profile and ensure a stable funding source.
02—Key points
Key Highlights
- Altria entered into an Extension and Amendment No. 2 to its $3.0 billion senior unsecured revolving credit agreement.
- The amendment extends the maturity date of the credit facility from August 1, 2023, to August 1, 2024.
- The agreement was entered into on August 18, 2021.
- Key financial institutions, including JPMorgan Chase Bank, N.A. and Citibank, N.A., are involved as administrative agents.
- The amendment updates provisions related to successor interest rates to LIBOR.
- All other terms and conditions of the original Credit Agreement remain in full force.
- This action provides Altria with an extended period of financial flexibility for this credit line.
03—Questions
Frequently Asked Questions
What is the primary purpose of this 8-K filing?
The primary purpose of this 8-K filing is to report Altria Group, Inc.'s entry into a material definitive agreement, specifically an extension and amendment to its $3.0 billion senior unsecured revolving credit facility.
How does this amendment affect Altria's debt maturity?
The amendment extends the maturity date of the $3.0 billion revolving credit facility by one year, moving it from August 1, 2023, to August 1, 2024. This provides Altria with an additional year of access to these funds.
Are there any significant changes to the terms of the credit agreement?
The most significant change is the extension of the maturity date. The amendment also updates provisions regarding a successor interest rate to LIBOR, reflecting industry changes. Other terms and conditions of the original credit agreement remain unchanged.
Does this filing indicate new borrowing or a change in Altria's financial health?
This filing does not indicate new borrowing or a change in financial health. It is a proactive measure to extend the maturity of an existing credit facility, ensuring continued access to funding and maintaining financial flexibility. It is a routine update to their credit arrangements.
04—Continue