Filing Category: Termination of a Material Definitive Agreement
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Analyst Summary
- L3Harris Technologies, Inc. entered into a new $2.5 billion, five-year senior unsecured revolving credit facility on February 18, 2025.
- The new revolving credit facility replaces the prior $2 billion, five-year senior unsecured revolving credit facility established in 2022.
- L3Harris also established a new $500 million, 364-day senior unsecured revolving credit facility on February 18, 2025.
- The new 364-day credit facility replaces the prior $1.5 billion 364-day senior unsecured revolving credit facility established in January 2024.
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Analyst Summary
- Hexcel Corporation redeemed its 4.700% Senior Notes due 2025 (aggregate principal amount of $300 million) on March 14, 2025.
- The redemption was funded by the net proceeds from the issuance of $300 million aggregate principal amount of 5.875% Senior Notes due 2035.
- The redemption was effected pursuant to the provisions of the Indenture dated August 3, 2015, between the Company and U.S. Bank Trust Company, National Association, as trustee.
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Analyst Summary
- Olin Corporation issued $600,000,000 aggregate principal amount of 6.625% Senior Notes due 2033.
- The Senior Notes will mature on April 1, 2033, and will have an interest rate of 6.625%, with interest paid semi-annually.
- Olin completed a refinancing of its senior unsecured Credit Agreement by entering into a new senior unsecured credit agreement.
- The Replacement Credit Agreement provides Olin with a $650,000,000 term loan facility and a $1,200,000,000 revolving credit facility.
- The proceeds of the Term Loan Facility were used to refinance the loans and commitments outstanding under the Existing Credit Agreement.
- The Replacement Credit Facilities are scheduled to mature on March 14, 2030.
- Olin executed a Thirteenth Amendment to its Amended and Restated Credit and Funding Agreement to amend certain covenants to be consistent with the Replacement Credit Agreement.
- In connection with the effectiveness of the Replacement Credit Agreement, Olin prepaid in full the outstanding aggregate principal amount of all loans under the Existing Credit Agreement, which was then terminated.
Potential Implications
Company Performance
- The refinancing and new credit facilities provide Olin with updated financial arrangements.
- The new credit agreement includes financial maintenance covenants that require Olin to maintain a consolidated interest coverage ratio and a consolidated net leverage ratio, which could impact operational decisions.
Stock Price
- The issuance of senior notes and refinancing of credit agreements could be viewed positively by investors, potentially impacting the stock price.
- Compliance with financial maintenance covenants in the new credit agreement could influence investor confidence.
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Analyst Summary
- Chord Energy Corporation completed an offering of $750 million in aggregate principal amount of its 6.750% senior unsecured notes due 2033.
- The net proceeds were used to purchase $366,342,000 of the Company’s 6.375% senior unsecured notes due 2026 tendered in the previously announced cash tender offer.
- Remaining proceeds will be used to redeem any and all of the remaining 2026 Notes that were not purchased in the Tender Offer, on or about June 1, 2025, repay a portion of its borrowings outstanding under the Company’s senior secured revolving credit facility, and pay all fees and expenses associated with each of the Tender Offer, the 2026 Notes Redemption and the Credit Facility.
- The company may redeem up to 40% of the notes prior to March 15, 2028 at a redemption price of 106.750% of the principal amount, plus accrued and unpaid interest, if any, to the redemption date, in an amount not greater than the net proceeds of certain equity offerings.
- The company may redeem some or all of the notes for cash prior to March 15, 2028 at a redemption price equal to 100% of the principal amount thereof plus an applicable make-whole premium and accrued and unpaid interest, if any, to, but excluding, the redemption date.
- The company must offer to repurchase the notes if it experiences specific kinds of changes of control or sells assets under certain circumstances.
- The indenture restricts the Company’s ability and the ability of certain of its subsidiaries to: (i) make investments; (ii) incur indebtedness or issue preferred stock; (iii) create liens; (iv) sell assets; (v) enter into agreements that restrict dividends or other payments by restricted subsidiaries; (vi) consolidate, merge or transfer all or substantially all of the assets of the Company; (vii) engage in transactions with affiliates; (viii) pay dividends or make other distributions on capital stock or prepay subordinated indebtedness; and (ix) create unrestricted subsidiaries.
Potential Implications
Company Performance
- The debt restructuring could improve the company’s financial flexibility by extending debt maturities.
- Repaying a portion of the credit facility could reduce interest expenses.
Stock Price
- Successful debt management could positively influence investor confidence.
- The terms of the new notes and redemption options may affect the stock’s attractiveness.