Business Context and Reporting Period
Company: Ecolab Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: June 1, 2006
Event: Entry into a Material Definitive Agreement (Amended and Restated Multicurrency Credit Agreement).
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or liquidity metrics. It focuses exclusively on the terms of a credit facility amendment.
- Lien Basket Increase: Increased from $75 million to $100 million.
- Credit Term Extension: Extended from August 13, 2009, to June 1, 2011.
Material Changes Versus Prior Period
Effective June 1, 2006, Ecolab Inc. amended its Multicurrency Credit Agreement with the following material changes:
- Covenant Removal: Deleted the financial covenant previously found in Section 5.03.
- Collateral Capacity: Increased the lien basket limit in Section 5.02(a) by $25 million.
- Maturity Date: Extended the agreement term by approximately two years.
- Pricing Structure: Modified the pricing grid for fees (Section 2.04) and interest (Section 2.07).
Guidance, Outlook, and Risks
The filing contains no management commentary, financial guidance, or specific risk factors beyond the structural changes to the credit agreement. The removal of a financial covenant suggests a potential reduction in restrictive financial testing requirements for the company.
Investor Verification Checklist
- Verify the specific new pricing grid terms for fees and interest in the attached Exhibit 10.
- Confirm the impact of removing the Section 5.03 financial covenant on future compliance obligations.
- Review the definition of the "lien basket" to understand the scope of the increased $100 million limit.
- Check subsequent filings for any drawdowns or utilization of the extended credit facility.