Summary
Palo Alto Networks, Inc. (PANW) announced on September 5, 2018, the entry into a new Credit Agreement, establishing an unsecured revolving loan facility with an initial principal amount of $400.0 million. This facility has the potential to be expanded up to $750.0 million through additional commitments from existing or new lenders, subject to certain conditions. The proceeds from this credit facility are designated for general corporate purposes, providing the company with increased financial flexibility. The agreement matures on September 4, 2023, or 91 days prior to the maturity of its 0.75% Convertible Senior Notes due 2023, under specific conditions related to outstanding notes and unrestricted cash. The Credit Agreement includes customary covenants, such as maintaining a leverage ratio not exceeding 3.50 to 1.00 and an interest coverage ratio of at least 3.00 to 1.00, beginning January 31, 2019. The filing also references a press release dated September 6, 2018, announcing the company's financial results for the fiscal fourth quarter and full year ended July 31, 2018, though the details of these results are not provided within the 8-K text itself.
Key Highlights
- 1Palo Alto Networks entered into a $400 million unsecured revolving credit facility, with an option to expand up to $750 million.
- 2The credit facility is intended for general corporate purposes.
- 3The facility matures on September 4, 2023, or is subject to an earlier termination based on conditions related to convertible notes.
- 4The agreement includes covenants requiring the maintenance of specific leverage and interest coverage ratios.
- 5Company is required to maintain a leverage ratio not exceeding 3.50:1.00 starting Q1 2019.
- 6Company is required to maintain an interest coverage ratio of at least 3.00:1.00 starting Q1 2019.
- 7The filing also incorporates by reference a press release detailing Q4 and full-year fiscal 2018 financial results.