Summary
TE Connectivity Ltd. (TEL) filed an 8-K on December 9, 2015, reporting a material definitive agreement related to an amendment of its revolving credit facility. The key changes introduced by the second amendment include a reduction in the interest rate margin contingent on improved debt ratings, an extension of the credit facility's maturity date from August 2, 2018, to December 9, 2020, and an increase in the judgment default threshold from $55 million to $150 million. Furthermore, the amendment incorporates updated provisions concerning representations and warranties and use of proceeds covenants to align with anti-terrorism and sanctions laws. It also reflects a change in the administrative agent for the credit facility, with Bank of America, N.A. succeeding Deutsche Bank AG New York Branch. These updates suggest a proactive approach by TE Connectivity to optimize its financing terms and ensure compliance with evolving regulatory landscapes.
Key Highlights
- 1TE Connectivity entered into a second amendment to its revolving credit facility dated December 9, 2015.
- 2The amendment extends the maturity date of the credit facility from August 2, 2018, to December 9, 2020.
- 3Potential for reduced interest rate margins is included if the Borrower's senior debt rating improves.
- 4The judgment default threshold under the credit agreement was increased from $55 million to $150 million.
- 5Amendments were made to representations, warranties, and use of proceeds covenants related to anti-terrorism and sanctions laws.
- 6Bank of America, N.A. has succeeded Deutsche Bank AG New York Branch as the administrative agent for the credit facility.