ABBOTT LABORATORIES (NYSE:ABT) Files An 8-K Entry into a Material Definitive AgreementItem 1.01. Entry into a Material Definitive Agreement.
On December 13, 2016, Abbott Laboratories, an Illinois corporation (the “Company”), entered into a 120-Day Bridge Term Loan Agreement (the “Bridge Loan Agreement”) with the lenders from time to time party thereto and Bank of America, N.A., as administrative agent (“Bank of America”).
The Bridge Loan Agreement provides the Company with the ability to borrow up to $2.0 billion on an unsecured basis to finance the St. Jude Acquisition (as defined in the Bridge Loan Agreement), to repay certain existing indebtedness of the Company and of the Acquired Business (as defined in the Bridge Loan Agreement) and to pay fees and expenses in connection with the St. Jude Transactions (as defined in the Bridge Loan Agreement).
The availability of the loans under the Bridge Loan Agreement, which have not yet been funded, is subject to the satisfaction (or waiver) of certain conditions set forth therein, including certain conditions related to the consummation of the St. Jude Acquisition. The loans will be made in a single borrowing and mature and be payable in full 120 days after such borrowing.
The Company’s borrowings under the Bridge Loan Agreement will bear interest, at the Company’s option, based on either a base rate or a Eurodollar rate, plus an applicable margin based on the Company’s credit ratings. The Company will also pay to the lenders under the Bridge Loan Agreement certain customary fees.
The Bridge Loan Agreement contains representations and warranties and affirmative and negative covenants customary for unsecured financings of this type as well as customary events of default.
The foregoing description of the Bridge Loan Agreement is qualified in its entirety by reference to the full text of the Bridge Loan Agreement, a copy of which will be filed with the Company’s next annual report on Form 10-K.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The disclosure contained in Item 1.01 above is incorporated in this Item 2.03 by reference.