Cummins enters $1.75 billion restated credit facility due 2020

By Marisa Wong

Morgantown, W.Va., Nov. 16 – Cummins Inc. entered into a $1.75 billion amended and restated credit agreement on Nov. 13, according to an 8-K filing with the Securities and Exchange Commission.

The unsecured credit agreement, which matures on Nov. 13, 2020, allows the company to obtain revolving and swingline loans and letters of credit.

Borrowings will bear interest at adjusted Libor plus a margin ranging from 50 basis points to 100 bps, depending on the company’s senior unsecured long-term debt rating. Based on current ratings, the interest rate is Libor plus 75 bps.

The agreement contains some financial and other covenants, the filing noted.

The new facility restates the company’s credit agreement dated Nov. 9, 2012. The prior facility was set to mature on Nov. 9, 2018 and had no loans outstanding.

Cummins is a Columbus, Ind.-based company that designs, manufactures, distributes and services diesel and natural gas engines and engine-related component products.

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