Summary
Northrop Grumman Corporation (NOC) filed an 8-K on July 9, 2015, to announce the entry into a new five-year senior unsecured revolving credit facility. This facility has an aggregate principal amount of $1.6 billion, replacing the company's existing $1.775 billion facility. The new agreement, effective July 8, 2015, includes standard covenants restricting asset sales, mergers, and fundamental changes, and sets a maximum consolidated debt to capitalization ratio of 65%.
Key Highlights
- 1Northrop Grumman entered into a new five-year senior unsecured revolving credit facility totaling $1.6 billion.
- 2This new facility amends and restates the company's prior $1.775 billion revolving credit facility from August 29, 2013.
- 3The agreement includes customary covenants related to fundamental business changes and liens.
- 4A key financial covenant restricts consolidated debt to capitalization from exceeding 65%.
- 5Northrop Grumman Systems Corporation, a subsidiary, will act as a guarantor for the credit facility.
- 6The credit agreement contains standard events of default, including non-payment, breach of representations, cross-defaults, and bankruptcy.