Summary
Rockwell Automation, Inc. (ROK) filed an 8-K on October 27, 2004, to report the execution of a new $600 million, five-year unsecured revolving credit agreement, effective October 26, 2004. This new facility, with JPMorgan Chase Bank as Administrative Agent, replaces existing credit lines totaling $337.5 million and is intended to provide funding for general corporate purposes, including commercial paper backstop, acquisitions, and stock repurchases. The agreement includes standard covenants, such as restrictions on secured indebtedness, mergers, asset sales, and a debt-to-capital ratio limit of 60%. The credit facility offers flexible interest rate options, including prime rate, federal funds rate, euro-dollar rate, or a competitive bid rate, plus an applicable margin based on Rockwell Automation's credit rating. The filing also details standard events of default and termination clauses that could lead to acceleration of indebtedness.
Key Highlights
- 1Execution of a new $600 million, five-year unsecured revolving credit agreement dated October 26, 2004.
- 2The new credit facility replaces two prior agreements totaling $337.5 million.
- 3Proceeds from borrowings are designated for general corporate purposes, including stock repurchases, acquisitions, and commercial paper backstop.
- 4Borrowings will bear interest at variable rates, including prime rate, federal funds rate, or euro-dollar rate plus an applicable margin.
- 5The agreement contains customary covenants, including restrictions on secured debt and a debt-to-capital ratio not exceeding 60%.
- 6Standard events of default and termination provisions are included, with potential for acceleration of indebtedness.
- 7JPMorgan Chase Bank serves as the Administrative Agent and is also a trustee for existing long-term debt and involved in other financial services for the company.