Summary
S&P Global Inc. (formerly McGraw Hill Financial, Inc.) filed an 8-K on July 1, 2015, to report the execution of a new $1.2 billion five-year revolving credit facility, dated June 30, 2015. This new agreement replaces the company's prior $1 billion four-year credit facility. The new facility provides S&P Global with increased borrowing capacity and extended maturity, enhancing its financial flexibility for operational needs, potential acquisitions, or other strategic initiatives. The credit agreement includes standard provisions such as affirmative and negative covenants, and events of default. While these are typical for corporate credit facilities, investors should note that a default could lead to the acceleration of the debt. The new, larger credit line indicates the company's confidence in its financial standing and its access to capital markets.
Key Highlights
- 1McGraw Hill Financial, Inc. (now S&P Global Inc.) secured a new $1.2 billion revolving credit facility.
- 2The credit agreement has a five-year term, providing long-term financing flexibility.
- 3This new facility replaces a previous $1 billion, four-year credit agreement.
- 4Standard covenants and events of default are included in the agreement.
- 5JPMorgan Chase Bank, N.A. is serving as the administrative agent for the credit facility.
- 6Standard & Poor’s Financial Services LLC is a guarantor under the new credit agreement.