Baxter International Inc. negotiated an increase and extension in its existing credit agreements.
The Deerfield, Ill.-based company said it can now borrow up to $2 billion in U.S. currency, replacing a 2015 credit agreement which gave it a limit of $1.5 billion. Baxter can also request a further $1 billion increase in its credit limit.
The new agreement is for a five-year period starting Dec. 20.
The company also has a euro credit agreement in place, which too has been extended for a further five years. Baxter can borrow €200 million under the agreement, with an option to request a further €100 million in its borrowing capacity.
Both agreements let Baxter use the credit at variable interest rates without having to submit its assets as collateral.
Baxter is in the process of acquiring an adhesive product line from Sanofi to bolster its advanced surgery product portfolio. The cost of the purchase is $350 million in cash.