Summary
Philip Morris International Inc. (PMI) announced on October 5, 2015, the execution of a new US$3.5 billion senior unsecured revolving credit facility, effective October 1, 2015. This facility, which matures on October 1, 2020, is intended for general corporate purposes and replaces a similar credit line set to expire in October 2016. The company reported no outstanding borrowings under the previous facility at the time of its termination. The new credit agreement includes customary covenants, notably a requirement to maintain an EBITDA to interest ratio of at least 3.5 to 1.0. It also outlines standard events of default and remedies, including automatic termination and acceleration in case of bankruptcy or insolvency. This move indicates PMI's proactive management of its liquidity and funding arrangements.
Key Highlights
- 1PMI entered into a new US$3.5 billion senior unsecured revolving credit facility on October 1, 2015.
- 2The new facility has a maturity date of October 1, 2020.
- 3The purpose of the facility is for general corporate purposes.
- 4This new credit facility replaces a previous US$3.5 billion facility that was set to expire in October 2016.
- 5The company had no outstanding borrowings under the replaced facility as of October 1, 2015.
- 6The credit agreement requires PMI to maintain an EBITDA to interest ratio of at least 3.5 to 1.0.
- 7The agreement includes standard events of default and remedies, with automatic termination and acceleration provisions.