Cummins gets $1.75 billion five-year facility led by JPMorgan, Merrill

By Susanna Moon

Chicago, Nov. 15 - Cummins Inc. obtained a $1.75 billion facility due Nov. 9, 2017 for revolving and swingline loans and letters of credit led by J.P. Morgan Securities LLC and Bank of America Merrill Lynch as bookrunners, according to an 8-K filing with the Securities and Exchange Commission.

Interest on the loans will be Libor plus 75 basis points to 150 bps, based on the company's credit ratings. The commitment fee ranges from 6 bps to 20 bps.

ING Capital LLC is the joint lead arranger. JPMorgan Chase Bank, NA is the administrative agent, issuing bank and swingline lender. Bank of America, NA is the syndication agent and swingline lender. ING Bank, NV, Dublin Branch is the co-documentation agent and swingline lender.

Export Development Canada, HSBC Bank USA, N.A., Royal Bank of Scotland plc and U.S. Bank NA are the co-documentation agents.

The loans will not be secured with liens on any of the company's or its subsidiaries' assets. The company will guarantee all borrowings by its subsidiaries, the filing noted.

The facility replaces a $1.24 billion credit agreement set to mature on July 16, 2014.

Cummins is a diesel engine manufacturer based in Columbus, Ind.

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