01—Abstract
Summary
Summary of the 8-K filed June 12, 2024. Cited figures are marked; the original filing is the authoritative source.
On June 10, 2024, Teledyne Technologies Incorporated (TDY), as borrower and guarantor, together with certain foreign subsidiaries designated as borrowers and its subsidiary Teledyne FLIR, LLC as subsidiary guarantor, entered into a Second Amended and Restated Credit Agreement.
The new agreement amends and restates in its entirety the Prior Credit Agreement dated March 4, 2021, as amended in October 2021 and April 2023. The facility provides for aggregate revolving loan commitments of up to $1,200,000,000,a letters of credit with an aggregate face amount of up to $500,000,000, and swing line loans of up to $10,000,000. Loans mature on June 10, 2029.
Interest accrues at variable rates, based on Term SOFR or Base Rate for U.S. dollar loans and Alternative Currency rates for other currencies, plus an applicable margin tied to Teledyne's public long-term unsecured debt ratings. Teledyne Netherlands B.V. and Teledyne Digital Imaging, Inc. are designated borrowers, and Teledyne has guaranteed their obligations.
The filing states that the covenants, representations and events of default are substantially similar to those in the Prior Credit Agreement. The agreement is filed as Exhibit 10.1, and the filing also reports the related direct financial obligation under Item 2.03.
02—Key points
Key Highlights
- Teledyne entered into a Second Amended and Restated Credit Agreement on June 10, 2024, replacing its Prior Credit Agreement in its entirety.
- Aggregate revolving commitments are up to $1,200,000,000.
- Letter of credit sub-facility of up to $500,000,000 and swing line sub-facility of up to $10,000,000.
- Loans mature on June 10, 2029.
- Interest is variable, based on Term SOFR or Base Rate (USD) or Alternative Currency rates, plus a margin tied to Teledyne's public debt ratings.
- Teledyne Netherlands B.V. and Teledyne Digital Imaging, Inc. are designated borrowers; Teledyne FLIR, LLC is a subsidiary guarantor.
- Covenants, representations and events of default are substantially similar to the Prior Credit Agreement.
03—Questions
Frequently Asked Questions
What is the size of the new credit facility?
The lenders have committed revolving loans in an aggregate amount of up to $1,200,000,000, with letters of credit of up to $500,000,000 and swing line loans of up to $10,000,000.
When do the loans under the new agreement mature?
Loans made under the Second Amended and Restated Credit Agreement mature on June 10, 2029.
How does the new agreement change interest costs?
The filing states that interest accrues in substantially the same manner as the Prior Credit Agreement, at variable rates (Term SOFR or Base Rate for U.S. dollar loans, Alternative Currency rates for other currencies) plus an applicable margin based on Teledyne's public debt ratings.
Which entities are parties to the agreement?
Teledyne Technologies Incorporated is the borrower and guarantor. Teledyne Netherlands B.V. and Teledyne Digital Imaging, Inc. are designated borrowers, and Teledyne FLIR, LLC is a subsidiary guarantor. Bank of America, N.A. is administrative agent, swing line lender and L/C issuer, per Exhibit 10.1.
Does the new agreement introduce new covenants or default terms?
The filing states that the representations, covenants and events of default are substantially similar to those in the Prior Credit Agreement.
04—Continue