Business Context and Reporting Period
Applied Materials, Inc. filed this Form 8-K on May 22, 2009, to report the amendment of its existing $1,000,000,000 Credit Agreement originally executed on January 26, 2007. The agreement involves Citicorp USA, Inc. as Administrative Agent and The Bank of Tokyo-Mitsubishi UFJ, Ltd. as Syndication Agent.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or specific debt balances. It focuses on the terms of a credit facility. The filing states that to date, Applied Materials has not requested or received any advances under the Credit Agreement.
Material Changes Versus Prior Period
The Credit Agreement was amended on May 22, 2009, with the following material changes:
- Covenant Modification: Replaced the existing funded-debt-to-adjusted-earnings ratio financial covenant with a minimum liquidity covenant and a funded-debt-to-total-capital ratio covenant.
- Cost Increase: Increased the facility fee and applicable interest rate margins on advances.
- Expiration: The scheduled expiration date remains January 26, 2012.
Guidance, Outlook, and Risks
The filing does not provide forward-looking guidance, management commentary on future performance, or specific risk factors beyond the amendment details. It notes that the lenders and their affiliates have engaged in, and may continue to engage in, banking and other transactions with the company for which they receive compensation.
Key Facts for Investor Verification
- Verify the specific numerical thresholds for the new minimum liquidity and funded-debt-to-total-capital covenants in the amended agreement.
- Confirm the exact percentage increase in facility fees and interest rate margins.
- Review the company's current liquidity position to assess compliance with the new minimum liquidity covenant.
- Check subsequent filings to determine if any advances have been drawn against the facility since May 22, 2009.