Cisco enters $3 billion unsecured revolver through Bank of America

By Jennifer Chiou

New York, Feb. 17 - Cisco Systems, Inc. entered into a $3 billion five-year unsecured revolving credit facility with Bank of America, NA as administration agent, swingline lender and a letter-of-credit issuer, according to an 8-K filing with the Securities and Exchange Commission.

Merrill Lynch, Pierce, Fenner & Smith Inc., Deutsche Bank Securities Inc., Citigroup Global Markets, Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC were the joint lead arrangers and joint book managers.

The commitment may be increased to up to a total of $5 billion, and the maturity may be extended to Feb. 17, 2019.

Borrowings will bear interest at Libor plus a margin dependent on Cisco's senior debt credit ratings.

Under the agreement, Cisco must maintain a ratio of consolidated EBITDA to consolidated interest expense of no less than 3 to 1, the filing stated.

In connection with the loan, Cisco terminated its prior revolver dated Aug. 17, 2007.

Based in San Jose, Calif., Cisco produces internet protocol-based networking and other communications and information technology products.

© 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.