3M enters into new $200 million bilateral letter-of-credit agreement

By Aleesia Forni

Columbus, Ohio, Aug. 30 - 3M Co. entered into a new $200 million bilateral letter of credit agreement, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

HSBC Bank USA NA is the lender for the facility, which closed on Aug. 24.

3M will pay a 19 basis points fee for outstanding letters of credit.

The maturity date of the agreement is Aug. 24, 2012.

The agreement contains covenants requiring 3M to maintain an EBITDA to interest ratio of 3.0 to 1, as well as restricting its ability to merge with another company or incur liens.

3M is a St. Paul, Minn.-based manufacturer of products in markets including health care, transportation, home and office supplies and protection services.

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