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.