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PROCTER & GAMBLE Co 8-K Report, Material Agreement (Aug 23, 2007)

Reports
Material Agreements·Financial Events
Filing Date
Filed August 23, 2007
Period End
August 23, 2007
Security
PG
In the record · 2016–202610-K1210-Q328-K226

PG filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 226 current reports (8-K) between 2016 and 2026.

  1. FY2019 annual report10-K · Aug ’19Aug ’19
  2. Leadership change8-K · Jan ’22Jan ’22
  3. Leadership change8-K · Dec ’25Dec ’25

01—Abstract

Summary

Summary of the 8-K filed August 23, 2007. Cited figures are marked; the original filing is the authoritative source.

Procter & Gamble (PG) announced on August 23, 2007, that it amended and restated its existing $24 billiona 3-year credit facility.

This restructuring created two new credit facilities: a $17 billionb 364-day facility and a $6 billion 5-year facility. Both facilities are intended to provide a backstop for commercial paper and support general corporate purposes. The new facilities have a variable interest rate of 8.5 basis points over LIBOR for drawn balances.

The 5-year facility's rate will increase to 15 basis points over LIBOR after August 2008. The company expects to repay these facilities through a combination of operating cash flow, commercial paper, and term debt starting in fiscal year 2007/08.

02—Key points

Key Highlights

  1. Procter & Gamble amended and restated its $24 billion credit facility, effective August 17, 2007.
  2. The amendment established two new credit facilities: a $17 billion 364-day facility and a $6 billion 5-year facility.
  3. The primary purpose of these facilities is to serve as a backstop for commercial paper and for general corporate purposes.
  4. Both facilities carry a variable interest rate of 8.5 basis points over LIBOR on drawn balances.
  5. The interest rate on the $6 billion 5-year facility will increase to 15 basis points over LIBOR starting August 2008.
  6. The company plans to repay these new facilities using operating cash flow, commercial paper, and term debt, beginning in fiscal year 2007/08.
  7. Key lenders in the syndicate include Citigroup and JP Morgan.

03—Questions

Frequently Asked Questions

  1. What is the total value of the new credit facilities?

    The total value of the new credit facilities is $23 billion, comprised of a $17 billion 364-day facility and a $6 billion 5-year facility.

  2. What is the purpose of these new credit facilities?

    The facilities are intended to provide a backstop for the company's commercial paper program and to be used for general corporate purposes.

  3. What are the interest rates associated with these facilities?

    Both facilities have an initial variable interest rate of 8.5 basis points over LIBOR on drawn balances. The rate for the $6 billion 5-year facility will increase to 15 basis points over LIBOR after August 2008.

  4. How does Procter & Gamble plan to repay these new facilities?

    The company expects to repay these facilities starting in fiscal year 2007/08 through a combination of operating cash flow, commercial paper, and term debt.

04—Continue

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