Corning enters $1.5 billion five-year replacement credit facility

By Marisa Wong

Los Angeles, June 7 – Corning Inc. entered into a new $1.5 billion credit agreement on June 6 to replace its existing $1.5 billion credit agreement dated Aug. 18, 2018, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

Under the new credit agreement, borrowings are available in dollars, sterling, yen and euros to Corning and any direct or indirect wholly owned subsidiary.

The commitment amount may be increased over the term by up to $500 million.

The credit agreement is scheduled to terminate on June 6, 2027. The termination date may be extended by up to two additional one-year periods on any anniversary of the closing date.

Interest is adjusted term SOFR (equal to term SOFR plus 10 basis points), Euribor, Tibor or Sonia plus a margin ranging from 68.5 bps to 112.5 bps, depending on the company’s debt ratings. Corning is also obligated to pay quarterly facility fees on the aggregate commitments under the credit agreement.

The agreement contains covenants requiring Corning to comply with, among other things, periodic financial reporting requirements and maintenance of a ratio of consolidated debt for borrowed money to consolidated total capital of no greater than 0.60 to 1.00.

At closing, there were no borrowings outstanding under the existing credit agreement and there are no amounts outstanding under the new agreement.

JPMorgan Chase Bank, NA is administrative agent. Citibank, NA is syndication agent. JPMorgan, Citibank and BofA Securities, Inc. are joint bookrunners and also joint lead arrangers alongside MUFG Bank, Ltd., HSBC Bank USA, NA, Sumitomo Mitsui Banking Corp., Standard Chartered Bank, Goldman Sachs Bank USA, Morgan Stanley Bank, NA and Wells Fargo Securities, LLC. Bank of America, NA is documentation agent.

Corning is a Corning, N.Y.-based technology company that specializes in specialty glass, ceramics and related materials and technologies including advanced optics, primarily for industrial and scientific applications.

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