Summary
S&P Global Inc. (formerly McGraw Hill Financial, Inc.) announced on June 19, 2013, the execution of a new $1 billion Four-Year Credit Agreement. This new facility replaces the company's previous $1.2 billion Three-Year Credit Agreement. The new credit line is secured by a $1 billion commitment and is a significant financial maneuver indicating the company's strategic financial management. This refinancing demonstrates proactive capital management, providing S&P Global with financial flexibility and resources for future operations and potential growth initiatives. The agreement includes standard covenants and events of default, which are typical for such corporate credit facilities, and provides insight into the company's access to and cost of capital.
Key Highlights
- 1S&P Global Inc. entered into a new $1,000,000,000 Four-Year Credit Agreement.
- 2The new credit facility has a maturity of four years from June 19, 2013.
- 3This new agreement replaces the company's prior $1,200,000,000 Three-Year Credit Agreement dated July 30, 2010.
- 4Standard & Poor’s Financial Services LLC, a wholly-owned subsidiary, is listed as a guarantor.
- 5JPMorgan Chase Bank N.A. is serving as the administrative agent, and Bank of America, N.A. as the syndication agent.
- 6The Credit Agreement includes customary affirmative and negative covenants.
- 7Typical events of default are included, with the potential for acceleration of obligations.