8-KMaterial AgreementsExhibits & Filings

NORTHROP GRUMMAN CORP /DE/ 8-K Report, Material Agreement (Aug 5, 2005)

Filed August 5, 2005For Securities:NOC

Summary

Northrop Grumman Corporation (NOC) has filed an 8-K report to announce the entry into a new, material definitive agreement, specifically a Credit Agreement dated August 5, 2005. This new agreement establishes a five-year revolving credit facility totaling $2 billion. The facility includes provisions for potential increases of up to an additional $500 million, offering flexibility for future capital needs. It also supports swingline loans and letters of credit. Concurrently with the execution of this new credit facility, Northrop Grumman's previous $2.5 billion five-year revolving credit agreement, dated March 30, 2001, has been terminated as a condition of the new agreement. Importantly, no principal or interest was outstanding or unpaid under the 2001 agreement at the time of its termination, indicating a smooth transition and no immediate financial obligations from the prior facility.

Key Highlights

  • 1Execution of a new $2 billion, five-year revolving credit facility as of August 5, 2005.
  • 2The new facility allows for potential increases of up to an additional $500 million, providing significant financial flexibility.
  • 3The agreement includes sub-facilities for swingline loans and letters of credit.
  • 4The new credit agreement replaces and terminates a prior $2.5 billion revolving credit facility dated March 30, 2001.
  • 5The termination of the prior credit agreement was a condition for the effectiveness of the new agreement.
  • 6No principal or interest was outstanding or unpaid under the terminated 2001 credit agreement.
  • 7Key financial institutions like JPMorgan Chase Bank, Credit Suisse, and Citicorp USA are involved as agents and lenders in the new facility.

Frequently Asked Questions

This 8-K filing announces Northrop Grumman Corporation's entry into a new material definitive agreement, which is a $2 billion five-year revolving credit facility, and the concurrent termination of its previous credit facility.

The new credit facility has an aggregate principal amount of $2 billion and a term of five years, maturing on August 5, 2010. It allows for potential increases of up to $500 million and includes provisions for swingline loans and letters of credit.

The company's previous $2.5 billion revolving credit agreement dated March 30, 2001, was terminated on August 5, 2005, as a condition for the new agreement to become effective. Importantly, there were no outstanding principal or accrued interest amounts under the old agreement at the time of termination.

The new credit facility enhances the company's financial flexibility by providing access to $2 billion in revolving credit, with the option to increase it by an additional $500 million. This allows the company to meet short-term liquidity needs and fund potential growth or strategic opportunities.