Business Context and Reporting Period
This Form 8-K Current Report was filed by Vulcan Materials Company on November 3, 2009. The report addresses a corporate action effective as of October 1, 2009, regarding the termination of a material definitive agreement.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, margin, or liquidity figures. The primary financial metric disclosed relates to debt capacity:
- Credit Facility Terminated: A $175 million 364-Day Revolving Credit Agreement.
- Counterparty: Bank of America, National Association (as administrative agent).
- Original Agreement Date: November 17, 2008.
- Scheduled Termination Date: November 16, 2009.
Material Changes Versus Prior Period
The material change reported is the early termination of the $175 million credit facility. The company elected to terminate the agreement on October 1, 2009, rather than waiting for the scheduled expiration on November 16, 2009. This action was taken because the company no longer required the borrowing capacity.
Management Commentary and Unusual Items
Management stated that the early termination was executed to save on facility fees that would have been due for the remainder of the term. The filing explicitly notes that the company did not incur any penalties for canceling the Credit Agreement prior to its scheduled termination date.
Investor Verification Checklist
- Confirm the effective date of the credit agreement termination (October 1, 2009).
- Verify that no early termination penalties were assessed against the company.
- Review the company's current liquidity position and alternative financing arrangements following the removal of the $175 million facility.
- Check subsequent filings for any new credit agreements or changes in debt structure.