Item 1.01. Entry into A Material Definitive Agreement
On
Under the Credit Agreement, 3M pays a commitment fee of 0.025% per annum on the
unused commitments. Advances denominated in
The Credit Agreement contains a provision under which 3M may, upon notice and payment of a fee equal to 0.50% of the principal amount of advances then outstanding, convert any advances outstanding on the maturity date into a term loan having a maturity one year later.
The Credit Agreement contains customary representations, warranties and covenants, including but not limited to covenants restricting 3M's ability to incur certain liens or to merge or consolidate with another entity where 3M is not the surviving entity. Further, it contains a covenant requiring 3M to maintain an EBITDA to Interest Ratio as of the end of each quarter at not less than 3.0 to 1. This is calculated as the ratio of consolidated EBITDA for the four consecutive quarters then ended to interest payable on all funded debt for the same period.
The full terms and conditions of the credit facility are set forth in the Credit Agreement. A copy of the Credit Agreement is filed as Exhibit 10.1 hereto and is incorporated by reference herein.
Some of the lenders named under the Credit Agreement and their affiliates have various relationships with 3M and its subsidiaries involving the provision of financial services, including cash management, investment banking, foreign exchange and trust services.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant
The information described above under "Item 1.01. Entry into a Material Definitive Agreement" with respect to the Credit Agreement is hereby incorporated by reference.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits: Exhibit Number Description of Exhibits 10.1 364-Day Credit Agreement dated as ofNovember 13, 2020 104 Cover Page Interactive Data File (the cover page XBRL tags are amended in the Inline XBRL document)
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