8-KMaterial AgreementsFinancial EventsExhibits & Filings

NORTHROP GRUMMAN CORP /DE/ 8-K Report, Material Agreement (Sep 13, 2011)

Filed September 13, 2011For Securities:NOC

Summary

Northrop Grumman Corporation (NOC) announced the entry into two senior unsecured credit facilities on September 8, 2011, totaling $2.0 billion. The primary facility is a $1.5 billion, five-year revolving credit line that amends and restates an existing agreement, extending its maturity to September 2016. Additionally, a new $0.5 billion, 364-day revolving credit facility was established. These facilities provide Northrop Grumman with significant financial flexibility and liquidity. The agreements include customary covenants, such as restrictions on asset sales, mergers, and incurring liens, as well as a maximum consolidated debt to capitalization ratio of 65 percent. These actions indicate a proactive approach by management to ensure adequate funding and maintain financial stability.

Key Highlights

  • 1Northrop Grumman entered into two new senior unsecured credit facilities totaling $2.0 billion.
  • 2A $1.5 billion, five-year revolving credit facility was established with a maturity extended to September 8, 2016.
  • 3A new $0.5 billion, 364-day revolving credit facility was also put in place.
  • 4The $1.5 billion facility amends and extends an existing credit agreement.
  • 5The credit agreements contain standard covenants, including restrictions on fundamental changes and a debt-to-capitalization ratio limit of 65%.
  • 6Northrop Grumman Systems Corporation acts as a Guarantor for these facilities.
  • 7JPMorgan Chase Bank, N.A. is the Administrative Agent for both facilities.

Frequently Asked Questions

Northrop Grumman established new senior unsecured credit facilities totaling $2.0 billion.

The facilities consist of a $1.5 billion, five-year revolving credit facility with a maturity in September 2016, and a $0.5 billion, 364-day revolving credit facility.

The credit agreements contain customary covenants, including restrictions on asset sales, mergers, and incurring liens, and a covenant that limits the company's consolidated debt to capitalization ratio to not exceed 65 percent.

JPMorgan Chase Bank, N.A. serves as the Administrative Agent, an Issuing Bank and a Swingline Lender for the five-year facility, while Citibank, N.A., The Royal Bank of Scotland PLC, and Wells Fargo Bank, National Association are Syndication Agents for both facilities.