Linde enters into $5 billion five-year revolving credit facility

By Sarah Lizee

Olympia, Wash., April 3 – Linde plc entered into a $5 billion unsecured revolving credit agreement due March 26, 2024 with Bank of America, NA as administrative agent on March 26, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement became effective on March 29.

Interest is Libor plus a margin that ranges 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.

The initial borrowers are the Linde, Praxair, Inc., Linde Intermediate Holding AG, Linde AG and Linde Finance BV. Additional subsidiaries may become borrowers, subject to some conditions.

Commitments may be increased to up to $6.5 billion.

Proceeds will be used for general corporate purposes.

Revolving loans may be borrowed in dollars, pounds sterling, euros and other currencies agreed to by the administrative agent and the lenders.

The credit 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.

Linde may request two one-year extensions of the expiration date.

The credit agreement does not contain any financial maintenance covenants.

In connection with entering into the new credit agreement, Praxair and Linde AG terminated their respective existing revolving credit agreements.

As of Wednesday, the new revolver was undrawn.

Merrill Lynch, Pierce, Fenner & Smith Inc., Citibank, NA, Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc. are joint lead arrangers and joint bookrunners. Citibank, Deutsche Bank and HSBC are syndication agents.

Bank of China Ltd. Zweigniederlassung Frankfurt Am Main Frankfurt Branch, Commerzbank AG, Filiale Luxemburg, Credit Suisse AG, Cayman Islands Branch, JPMorgan Chase Bank, NA, Mizuho Bank, Ltd., UniCredit Bank AG and Wells Fargo Bank, NA are documentation agents.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.