Summary
This 8-K filing from S&P Global Inc. (SPGI), filed on August 18, 2009, reports on the execution of a new $433.3 million 364-Day Credit Agreement by its parent company, The McGraw-Hill Companies, Inc. (McGraw-Hill), on August 14, 2009. Standard & Poor's Financial Services LLC, a wholly-owned subsidiary of McGraw-Hill, is listed as a guarantor under this new agreement. This credit facility replaces an existing similar agreement and provides revolving borrowing capacity.
Key Highlights
- 1McGraw-Hill Companies, Inc. entered into a new $433,333,333.34 364-Day Credit Agreement.
- 2The new Credit Agreement is dated August 14, 2009.
- 3Standard & Poor’s Financial Services LLC (S&P) is a guarantor under this new credit facility.
- 4The agreement replaces a previous 364-Day Credit Agreement dated September 12, 2008.
- 5The new credit facility terminates on August 13, 2010.
- 6The agreement includes customary covenants and events of default, with potential acceleration of obligations.
- 7The Credit Agreement is available as an exhibit to this filing.
Frequently Asked Questions
The main purpose of this 8-K filing is to report on the execution of a new 364-Day Credit Agreement by S&P Global's parent company, The McGraw-Hill Companies, Inc., which includes S&P Financial Services LLC as a guarantor.
The new credit facility has a principal amount of $433,333,333.34 and it terminates on August 13, 2010.
The filing indicates that S&P Financial Services LLC is a guarantor for the credit facility. While this does not represent direct borrowing by SPGI itself, it signifies a commitment that could have implications if the parent company defaults. Investors should review the full terms and covenants of the Credit Agreement for a comprehensive understanding of potential impacts.
The replacement of the previous credit agreement with a larger one suggests a potential need for increased liquidity or a refinancing of existing debt. The new agreement extends the maturity date to August 13, 2010.