Boston, MA 10/06/2014 (wallstreetpr) – Corning Incorporated (NYSE:GLW) disclosed that it struck an amended and restated credit deal with the financial institutions. As a result, it would be in a position to have $200 million worth of credit in different currencies like, Dollars, Yen, Sterling and Euros. The latest agreement replaced its earlier deal struck in March 2013.
Letter Of Credit
The company filed Form 8-K with the SEC providing details of the restated agreement with various banks. The deal included with banks such as JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc (NYSE:C), Bank of America Corp (NYSE:BAC), Deutsche Bank AG, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Standard Chartered Bank, HSBC Bank USA, Barclays Bank, Goldman Sachs Group Inc (NYSE:GS), Wells Fargo & Co (NYSE:WFC), Sumitomo Mitsui Banking Corporation, Bank of China and The Bank of New York Mellon Corporation (NYSE:BK).
Corning Incorporated (NYSE:GLW) said that under the restated credit deal, it would be able to enjoy $200 million letter of credit as maximum outstanding amount at any given point of time in different currencies put together. The commitment could be increased by maximum to $500 million over the term subject to the current, as well as, new lenders providing such commitment for an increase.
The company stated that its changed credit agreement would terminate on September 30, 2019. However, it added that the termination date could be extended by a year at the end of September 2015 and 2016 on its request and subject to the lenders’ consent.
Corning Incorporated (NYSE:GLW) said that the interest payable under its deal would equal to LIBOR plus a margin between 0.68% and 1.10%. Alternatively, interest would be calculated on base rate plus margin between 0.00% and 0.10%.
The company indicated that the real margin could be adjustable depending upon ratings of debt issued by rating agencies such as Standard & Poor’s and Moody’s on Corning’s unsecured debt instruments.
The credit agreement came up with some riders. As a result, the company should comply with the regular reporting of financial numbers; maintain consolidated debt ratio for borrowed money in comparison with total capital; limit on the subsidiary indebtedness incurrence and limit on liens.