Business Context and Reporting Period
Company: Emerson Electric Co.
Filing Type: Form 8-K (Current Report)
Date of Report: May 23, 2018
Event: Entry into a new material definitive agreement regarding a revolving credit facility.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or liquidity metrics. It focuses exclusively on debt capacity and credit facility terms.
- New Facility Amount: $3.5 billion
- Facility Type: Five-year revolving credit facility (2018 Facility)
- Expiration Date: May 2023
- Outstanding Borrowings: $0 (No loans or letters of credit currently outstanding)
- Security Status: Unsecured
- Primary Agent: JPMorgan Chase Bank, N.A.
Material Changes Versus Prior Period
The Company terminated its previous $3.5 billion five-year revolving credit facility dated April 30, 2014, on May 23, 2018. This was immediately replaced by the new 2018 Facility with identical aggregate capacity ($3.5 billion) but updated terms and a new maturity date of May 2023.
Guidance, Outlook, and Management Commentary
Management Commentary: The 2018 Facility supports general corporate purposes, including commercial paper borrowings. The Company has not incurred any borrowings under this or prior similar facilities and has no current intention to do so.
Terms: The facility allows for various interest rate alternatives at the Company's option. Loans and letters of credit may be denominated in U.S. dollars or certain other currencies. The Company guarantees the obligations of eligible subsidiaries designated as borrowers.
Risks and Contingencies: The agreement contains customary representations, warranties, covenants, and events of default. Lenders and their affiliates may engage in commercial banking, investment banking, or advisory services with the Company.
Important Facts for Investor Verification
- Verify the specific interest rate alternatives and facility fee structures in the attached Credit Agreement (Exhibit 10.1).
- Confirm the list of eligible subsidiaries that may be designated as borrowers under the facility.
- Review the customary covenants and events of default to understand potential restrictions on future operations.
- Note that while the facility capacity remains at $3.5 billion, the Company currently holds no debt under this instrument.