8-KMaterial AgreementsFinancial EventsExhibits & Filings

SHERWIN WILLIAMS CO 8-K Report, Material Agreement (Jan 11, 2010)

Filed January 11, 2010For Securities:SHW

Summary

Sherwin-Williams Company (SHW) has entered into a new three-year, $500 million Credit Agreement, effective January 8, 2010. This facility provides flexibility, allowing for potential increases up to $750 million, and matures on January 8, 2013, with options for two one-year extensions. The agreement is designed to support general corporate purposes, including working capital and commercial paper borrowings. This new credit facility replaces a previous $845 million agreement that was terminated on the same date and would have otherwise expired in July 2010. Notably, there were no outstanding borrowings under the prior agreement at the time of its termination, and as of the filing date, Sherwin-Williams had no outstanding borrowings under the new agreement. The terms and covenants within the new agreement are substantially similar to the previous one, indicating a continuity in the company's financing structure and risk management approach.

Key Highlights

  • 1Entry into a new $500 million, three-year Credit Agreement effective January 8, 2010.
  • 2The new credit facility has an accordion feature, allowing it to be increased up to $750 million.
  • 3Maturity date is set for January 8, 2013, with two one-year extension options.
  • 4The facility can be used for general corporate purposes, working capital, and commercial paper support.
  • 5The new agreement replaces a prior $845 million credit facility that was terminated on January 8, 2010.
  • 6No borrowings were outstanding under the prior facility at termination, and none under the new facility as of the filing date.
  • 7Covenants and terms in the new agreement are substantially similar to the prior agreement.

Frequently Asked Questions

The new Credit Agreement is primarily for general corporate purposes, including financing working capital requirements and supporting commercial paper borrowings. This provides Sherwin-Williams with financial flexibility for its ongoing operations.

The new Credit Agreement has an initial size of $500 million and a term of three years, maturing on January 8, 2013. It also includes provisions for potential increases up to $750 million and options for two one-year extensions.

No, the filing states that the prior credit agreement, which was terminated on January 8, 2010, had no outstanding borrowings at the time of its termination. Similarly, as of the filing date, there were no outstanding borrowings under the new Credit Agreement.

The new agreement replaces a prior $845 million facility. While the new facility is initially smaller in authorized size, its terms, covenants, and representations are substantially similar to those of the prior agreement, suggesting a continuity in the company's financing strategy and risk management.