Summary
Northrop Grumman Corporation (NOC) announced on October 21, 2019, an amendment to its Credit Agreement dated August 17, 2018. The key change is the extension of the credit facility's final maturity date by one year, from August 17, 2023, to August 17, 2024. This amendment provides the company with extended financial flexibility and reinforces its commitment to maintaining a strong liquidity position. Additionally, the amendment addresses a technical accounting change related to the recognition of actuarial gains and losses for pension and other post-employment benefit (OPB) plans. By excluding certain impacts of this accounting change from the definition of "Shareholders' Equity" within the credit agreement, the company ensures that its leverage covenants remain aligned with its operational and financial reporting standards. This proactive measure helps to maintain compliance with existing debt agreements and avoid potential covenant breaches.
Key Highlights
- 1Extended credit facility maturity by one year to August 17, 2024.
- 2Amended Credit Agreement dated August 17, 2018.
- 3NOC is the borrower, Northrop Grumman Systems Corporation is the guarantor.
- 4JPMorgan Chase Bank, N.A. remains the administrative agent.
- 5Amendment adjusts the definition of "Shareholders' Equity" to exclude specific accounting impacts.
- 6Accounting adjustment relates to recognition of actuarial gains and losses for pension and OPB plans.
- 7Enhances financial flexibility and covenant compliance.