Textron enters into $1 billion revolving facility with JPMorgan Chase

By Jennifer Chiou

New York, Oct. 4 - Textron Inc. entered into a $1 billion senior unsecured revolving credit facility with JPMorgan Chase Bank, NA as administrative agent and Citibank, NA and Bank of America, NA as syndication agents, according to an 8-K filing with the Securities and Exchange Commission.

The Bank of Tokyo-Mitsubishi UFJ, Ltd. acted as documentation agent.

The facility matures in October 2018 and replaces the company's previous $1 billion facility that was scheduled to expire in March 2015.

Borrowings will bear interest at Libor plus 100 basis points to 170 bps, depending upon Textron's ratings. The current interest would be Libor plus 127.5 bps.

There is a quarterly facility fee, regardless of borrowing activity, ranging from 12.5 bps to 30 bps, depending on ratings.

The filing noted that up to $100 million is available for letters of credit.

Textron is required to maintain the finance company leverage ratio at no more than 9 to 1, and it is also required that the consolidated debt of the company and its manufacturing subsidiaries not exceed 65% of the consolidated capitalization.

Textron is a Providence, R.I.-based company with aircraft, defense and intelligence, industrial and finance businesses.

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