Newell Brands Inc. secured a total of $2.25 billion from a five-year $1.25 billion revolving credit agreement and a bridge loan agreement that provides for a $1 billion senior unsecured term loan facility.
The household goods company said it expects to use proceeds from any borrowings under the revolver for general corporate purposes, while the proceeds of the bridge loan agreement are expected to be used as necessary to finance a portion of the recently announced tender offers, including any related fees and expenses, according to a Form 8-K filed Dec. 18.
Newell Brands entered into the unsecured revolving credit facility Dec. 12 with a syndicate of banks led by JPMorgan Chase Bank NA as administrative agent. Under the agreement, Newell Brands may ask to increase the aggregate commitments to up to $1.75 billion, upon the satisfaction of certain conditions. The company may also ask to extend the revolver's maturity date, pending approval, by single year increments.
The revolver provides for the issuance of up to $100 million of letters of credit for the company's account, contingent on there being a sufficient amount available for borrowing under the facility.
Additionally, on Dec. 13, Newell Brands entered into a bridge loan agreement with Credit Suisse AG, Cayman Islands Branch, as lender and administrative agent. The unsecured term loan facility has a maturity date of June 14, 2019.
The bridge loan agreement is a short-term loan and requires the company to repay any outstanding indebtedness on the maturity date, the then unpaid principal amount of the loans outstanding under the loan agreement. It also provides for voluntary prepayment of loans without premium or penalty, subject to certain conditions and exceptions, the filing noted.