Summary
Visa Inc. (V) reported on November 19, 2007, the entry into a new 364-day Revolving Credit Agreement by Visa International on November 15, 2007. This agreement supersedes the prior 2006 Credit Agreement and provides a total commitment of U.S.$2.25 billion. The credit facility is unsecured and can be drawn in multiple currencies or U.S. dollars, with interest rates tied to benchmark rates plus a margin.
Key Highlights
- 1Visa International entered into a new U.S.$2.25 billion 364-day Revolving Credit Agreement on November 15, 2007.
- 2The new credit facility replaces the previous 364-day Revolving Credit Agreement dated November 20, 2006.
- 3The agreement is unsecured and includes two tranches: a U.S.$1.91 billion multi-currency tranche and a U.S.$340 million U.S. dollar tranche.
- 4Interest rates are variable, based on either the federal funds rate plus 0.5% or the Bank of America prime rate for base rate loans, or LIBOR plus a margin for eurocurrency loans.
- 5Proceeds can be used for refinancing, ensuring settlement integrity, backing commercial paper programs, and general corporate purposes.
- 6Visa Inc. has the option to assume the borrower's obligations and liabilities under the agreement, releasing Visa International.
- 7The agreement contains standard covenants, including events of default, conditions precedent, and representations and warranties.