Lockheed Martin enters new $3 billion five-year revolving facility

By Wendy Van Sickle

Columbus, Ohio, Aug. 24 – Lockheed Martin Corp. entered into a credit agreement on Tuesday that provides for a $3 billion five-year revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The revolver has a $500 million accordion feature.

The credit agreement matures on Aug. 24, 2026, but the company may request that commitments be renewed for one-year periods under certain circumstances.

The interest rate is Libor plus a margin that ranges from 69 basis points to 112.5 bps, and the facility fee rate ranges from 6 bps to 12.5 bps. The exact pricing depends on the company’s ratings.

The credit agreement has a covenant that caps the company’s leverage ratio at 65%, which is calculated as a ratio of debt to the sum of debt and stockholders’ equity on a consolidated basis.

No borrowings under the revolver were made and no letters of credit were issued at closing.

JPMorgan Chase Bank, NA, BofA Securities, Inc., Citibank, NA, Credit Agricole CIB, Mizuho Bank Ltd. and Wells Fargo Securities, LLC are the lead arrangers and bookrunners.

JPMorgan is the syndication agent. Citibank, Credit Agricole, Mizuho and Wells Fargo Bank, NA are the documentation agents. Bank of America, NA is the administrative agent.

The credit agreement replaces the company’s five-year revolving credit agreement that was scheduled to mature Aug. 24, 2024. The former credit agreement, which had a total capacity of $2.5 billion, was undrawn and was terminated Tuesday.

Lockheed Martin is a security and aerospace company based in Bethesda, Md.

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