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.