Corning gets amended and restated $1 billion credit agreement via Citi

By Toni Weeks

San Luis Obispo, Calif., March 13 - Corning Inc. entered into a new amended and restated credit agreement with Citibank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The new agreement amends the company's existing amended and restated credit agreement dated Dec. 16, 2010.

Under the agreement, borrowings are available to Corning and its subsidiaries in dollars, pounds, yen and euros in an amount up to $1 billion, of which $200 million is available for letters of credit. The commitment amount may be increased by up to $250 million, subject to existing or new lender commitment. Loans made to subsidiaries will be unconditionally guaranteed by Corning.

Interest is Libor plus 68 basis points to 120 bps, with the actual margin dependent upon the debt ratings from Moody's and Standard & Poor's of Corning's unsecured debt. The company will also pay quarterly facilities fees on the aggregate commitments under the facility.

The agreement matures March 13, 2018 and may be extended by one year on each of March 13, 2014 and March 13, 2015, subject to lender approval.

The agreement contains affirmative and negative covenants, including periodic financial reporting requirements, maintaining a ratio of consolidated debt for borrowed money to consolidated total capital of no greater than 0.50 to 1.00, limitation on liens, limitation on the incurrence of subsidiary debt and limitation on mergers, among others.

At closing there were no borrowings outstanding under the credit agreement.

Proceeds will be available for general corporate purposes of Corning and its subsidiaries, including commercial paper backstop.

JPMorgan Chase Bank, NA is the syndication agent. Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are joint lead arrangers and joint bookrunners.

The global glass and display technology company is based in Corning, N.Y.

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