Linde restates $5 billion revolver, gets $1.5 billion 364-day facility

By William Gullotti

Buffalo, N.Y., Dec. 8 – Linde plc amended and restated its $5 billion unsecured revolving credit agreement and signed a new $1.5 billion 364-day credit agreement, each with Bank of America, NA as administrative agent, on Dec. 7, according to an 8-K filing with the Securities and Exchange Commission.

The restated revolver matures Dec. 7, 2027 and features two, one-year maturity extensions, which are subject to lender approval.

As with the initial facility signed March 26, 2019, commitments may be increased to up to $6.5 billion.

The amended agreement also includes commitments for swingline loans of $200 million for dollar-denominated swingline loans and €100 million for euro-denominated swingline loans, as well as for letters of credit, letters of indemnity and bank guarantees in approved currencies of $600 million.

Revolver borrowings will bear interest at SOFR, Euribor or Sonia plus a margin ranging from 62.5 basis points to 125 bps, and the commitment fee ranges from 5 bps to 12.5 bps, in each case depending on the company’s credit ratings.

As with the initial revolver, the restated agreement does not contain any financial maintenance covenants and was undrawn at signing.

Revolver proceeds will continue to be available for general corporate purposes.

The $1.5 billion 364-day credit agreement is a revolving facility that also includes commitments for swingline loans of $50 million for dollar-denominated swingline loans and €25 million for euro-denominated swingline loans.

Subject to satisfaction of certain conditions, including advance notice to the administrative agent, the entire outstanding balance of the facility may be converted into non-revolving term loans that mature one year after conversion.

As with the five-year facility, borrowings will bear interest at SOFR, Euribor or Sonia plus a margin ranging from 62.5 bps to 125 bps. The commitment fee ranges from 2 bps to 10 bps. The margins and fee are likewise determined by the company’s credit ratings.

The 364-day agreement was also undrawn at signing and is not subject to any financial maintenance covenants.

BofA Securities, Inc., Citibank, NA, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and Mizuho Bank, Ltd. are the joint lead arrangers and joint bookrunners for both facilities.

Citi, Deutsche Bank, HSBC and Mizuho are also acting as syndication agents for both revolvers.

Bank of China Ltd. Zweigniederlassung Frankfurt Am Main Frankfurt Branch, Credit Suisse AG, New York Branch, JPMorgan Chase Bank, NA, Societe Generale, Toronto-Dominion Bank, London Branch and Unicredit Bank AG, New York Branch are the documentation agents for each agreement.

Linde is a Munich-based chemical company formed by the merger of Linde AG and Praxair.

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