Item 1.01 Entry into a Material Definitive Agreement
5-Year Credit Agreement
On October 4, 2021, Eaton Corporation plc (the "Company"), Eaton Corporation
("Eaton Corporation") and Eaton Capital Unlimited ("Eaton Capital", and together
with the Company and Eaton Corporation, the "Borrowers") entered into a
Revolving Credit Agreement (the "5-Year Credit Agreement") with certain
subsidiaries of the Company as guarantors, certain banks party thereto as
lenders and Citibank, N.A. ("Citibank"), as administrative agent for the
lenders. The 5-Year Credit Agreement provides for maximum borrowings of up to
$2.0 Billion in the aggregate, and replaces and supersedes the three existing
revolving facilities entered into by Eaton Corporation with Citibank as
administrative agent on November 17, 2017 with a maturity date of November 17,
2022, on November 7, 2019 with a maturity date of November 7, 2024 and on
November 7, 2019 with a maturity date of November 7, 2023, which provided for
maximum borrowings of up to $2.0 Billion in the aggregate, all three of which
were on substantially similar terms as the 5-Year Credit Agreement. The
Borrowers may request commitment increases of up to $750 million under the
5-Year Credit Agreement from existing lenders or additional banks, subject to
customary conditions including absence of default and accuracy of
representations and warranties under the 5-Year Credit Agreement.
The 5-Year Credit Agreement includes customary negative covenants limiting the
borrowers and their subsidiaries' ability to incur debt and liens, among others.
In addition, under the 5-Year Credit Agreement, the borrowers will pay a
quarterly facility fee that is dependent on their credit rating and will range
from 5 basis points to 12.5 basis points.
The maturity date under the 5-Year Credit Agreement is October 4, 2026. The
Borrowers may request a one-year extension of the maturity date by giving notice
to Citibank not more than 60 days' prior to the maturity date then in effect
under the 5-Year Credit Agreement. Subject to the absence of any default and
the accuracy of representations and warranties in the 5-Year Credit Agreement,
the maturity date will be extended if banks holding a majority of the
commitments thereunder agree to extend their commitments.
The description above is only a summary of the material provisions of the 5-Year
Credit Agreement and does not purport to be complete and is qualified in its
entirety by reference to the provisions in such 5-Year Credit Agreement, a copy
of which is attached hereto as Exhibit 99.1.
364-Day Credit Agreement
Also on October 4, 2021, the Borrowers entered into a 364-Day Revolving Credit
Agreement (the "364-Day Credit Agreement") with certain subsidiaries of the
Company as guarantors, certain banks party thereto as lenders and Citibank as
administrative agent for the lenders. The 364-Day Credit Agreement provides for
maximum borrowings of up to $500 million in the aggregate, and replaces and
supersedes the existing revolving facility entered into by Eaton Corporation
with Bank of America, N.A. as administrative agent on May 17, 2021 with a
maturity date of May 16, 2022, which provided for maximum borrowings of up to
$2.5 Billion in the aggregate (the "Existing 364-Day Facility"). The 364-Day
Credit Agreement is on terms substantially similar to the Existing 364-Day
Credit Facility. The Borrowers may request commitment increases of up to $250
million under the 364-Day Credit Agreement from existing lenders or additional
banks, subject to customary conditions including absence of default and accuracy
of representations and warranties under the 364-Day Credit Agreement.
The 364-Day Credit Agreement includes customary negative covenants limiting the
Borrowers and their subsidiaries' ability to incur debt and liens, among
others. In addition, under the 364-Day Credit Agreement, the Borrowers will pay
a quarterly facility fee that is dependent on their credit rating and will range
from 3 basis points to 10 basis points.
The maturity date under the 364-Day Credit Agreement is October 3, 2022. The
Borrowers may request a conversion of the commitments under the 364-Day Credit
Agreement into term loans with a maturity date no later than one year following
the date of conversion by giving notice to Citibank not less than 10 and not
more than 20 days' notice prior to the maturity date under the 364-Day Credit
Agreement. The term loan conversion option is subject to the absence of any
default, the accuracy of representations and warranties in the 364-Day Credit
Agreement and payment of a fee equal to 0.75% of the aggregate principal amount
of loans outstanding on the conversion date.
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The description above is only a summary of the material provisions of the
364-Day Credit Agreement and does not purport to be complete and is qualified in
its entirety by reference to the provisions in such 364-Day Credit Agreement, a
copy of which is attached hereto as Exhibit 99.2.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of the Registrant.
The information set forth in Item 1.01 of this Current Report on Form 8-K is
incorporated by reference in this Item 2.03.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. Description
99.1 5-Year Revolving Credit Agreement, dated as of October 4, 2021, among
Eaton Corporation plc, Eaton Corporation, Eaton Capital Unlimited, the
guarantors from time to time party thereto, the several lenders from
time to time parties thereto, Citibank, N.A., as Administrative Agent,
Citibank, N.A., JPMorgan Chase Bank, N.A., BofA Securities, Inc., BNP
Paribas Securities Corp., Deutsche Bank Securities Inc. and Morgan
Stanley Senior Funding, Inc., as joint lead arrangers and joint
bookrunners, JPMorgan Chase Bank, N.A., as syndication agent and Bank of
America, N.A., BNP Paribas, Deutsche Bank AG New York Branch and Morgan
Stanley Senior Funding, Inc., as documentation agents.
99.2 364-Day Revolving Credit Agreement, dated as of October 4, 2021, among
Eaton Corporation plc, Eaton Corporation, Eaton Capital Unlimited, the
guarantors from time to time party thereto, the several lenders from
time to time parties thereto, Citibank, N.A., as Administrative Agent,
Citibank, N.A., JPMorgan Chase Bank, N.A., BofA Securities, Inc., BNP
Paribas Securities Corp., Deutsche Bank Securities Inc. and Morgan
Stanley Senior Funding, Inc., as joint lead arrangers and joint
bookrunners, JPMorgan Chase Bank, N.A., as syndication agent and Bank of
America, N.A., BNP Paribas, Deutsche Bank AG New York Branch and Morgan
Stanley Senior Funding, Inc., as documentation agents.
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