Item 1.01 Entry Into a Material Definitive Agreement
Amendments to the Credit Agreement
On
The Amendment No. 5 increases the commitments available to the Company under the
Credit Agreement to
Borrowings under the revolving credit facility bear interest at the following rates, plus an applicable margin, depending on currency:
•U.S. dollar denominated loans bear interest, at the higher of the prime rate last quoted by The Wall Street Journal in theU.S. as the prime rate in effect, an adjusted rate linked to theNew York Federal Reserve Bank rate from time to time or an adjusted rate linked to the Term SOFR Rate for one month interest period; • Sterling denominated loans bear interest at Adjusted Daily Simple SONIA Rate; and • Euro denominated loans bear interest on adjusted rate linked to the Euro interbank offered rate.
The applicable margin for borrowings under the revolving credit facility ranges
from 2.50% to 3.50% for Euro and Sterling loans and 1.50% to 2.50% for
Upon the occurrence of an Investment Grade Debt Rating by any two of three Rating Agencies and the satisfaction of certain other conditions precedent, the collateral securing the Credit Agreement and the guarantees provided by certain subsidiaries of the Company shall be automatically released and certain negative covenants will no longer apply to the Company.
Performance Letter of Credit Facility
On
The Performance LC Credit Agreement permits the Company and its subsidiaries to have access to performance letters of credit denominated in a variety of currencies to support the contracting activities of the Company and its subsidiaries with counterparties that require or request a performance guarantee or similar.
The Performance LC Credit Agreement contains substantially the same customary representations and warranties, covenants, events of default, mandatory repayment provisions and financial covenants as the Credit Agreement and benefits from the same guarantees and security as the Credit Agreement on a pari passu basis.
Upon the occurrence of an Investment Grade Debt Rating by any two of three Rating Agencies and the satisfaction of certain other conditions precedent, the collateral securing the Performance LC Credit Agreement and the guarantees provided by certain subsidiaries of the Company shall be automatically released and certain negative covenants therein will no longer apply to the Company.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
The information set forth in Item 1.01 is hereby incorporated into this Item 2.03 by reference.
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Item 9.01 Financial Statements and Exhibits
(d) Exhibits Exhibit No. Description 10.1* Amendment No. 5 to the Credit Agreement, datedApril 24, 2023 , by and amongTechnipFMC plc ,FMC Technologies, Inc. andTechnipFMC Finance Limited as borrowers,JPMorgan Chase Bank, N.A .,BofA Securities Inc. ,Citibank, N.A ., as joint lead arrangers and joint bookrunners,JPMorgan Chase Bank, N.A ., as administrative agent, Société Générale, Standard Chartered Bank,Sumitomo Mitsui Banking Corporation andWells Fargo Bank, National Association , as co-documentation agents, and the lenders party thereto 10.2* Performance LC Credit Agreement, datedApril 24, 2023 , by and amongTechnipFMC plc ,FMC Technologies, Inc. andTechnipFMC Finance Limited as borrowers, the lenders and Issuing Banks party thereto,DNB Bank ASA ,New York Branch, as administrative agent andDNB Markets, Inc. , Deutsche Bank AG,New York Branch, Société Générale andWells Fargo Bank, National Association as joint lead arrangers and joint bookrunners 104 Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
* Certain schedules and annexes have been omitted pursuant to Item 601(a)(5) of
Regulation S-K and will be provided to the
upon request.
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