HUNTINGTON INGALLS INDUSTRIES, INC. (NYSE:HII) Files An 8-K Entry into a Material Definitive AgreementItem 1.01. Entry Into a Material Definitive Agreement.
On November22, 2017 (the “Closing Date”), Huntington Ingalls Industries, Inc. (the “Company”) entered into a Credit Agreement (the “Credit Agreement”) among the Company, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent and an issuing bank, and certain other issuing banks. The Credit Agreement includes a revolving credit facility of $1,250 million, with a letter of credit subfacility of $500 million.On the Closing Date, the Company used cash on hand to repay all amounts outstanding under the prior credit agreement, which has been terminated.
The revolving credit facility has a variable interest rate on outstanding borrowings based on the London Interbank Offered Rate (LIBOR) plus a spread based upon the Company’s credit rating, which may vary between 1.125% and 1.50%. The revolving credit facility also has a commitment fee rate on the unutilized balance based on the Company’s credit rating, which may vary between 0.20% and 0.30%.The Credit Agreement contains affirmative and negative covenants customary for an unsecured credit facility, as well as a financial covenant based on a maximum total leverage ratio.Each of the Company’s existing and future material wholly owned domestic subsidiaries, except those that are specifically designated as unrestricted subsidiaries, are and will be guarantors under the Credit Agreement.
The foregoing description of the Credit Agreement is qualified in its entirety by reference to the Credit Agreement, a copy of which is attached hereto as Exhibit 10.1 and incorporated herein by reference.
The administrative agent and lenders, together with their affiliates, are full service financial institutions engaged in various activities, which may include securities trading, commercial and investment banking, financial advisory, investment management, investment research, principal investment, hedging, financing and brokerage activities. The administrative agent and lenders and/or their affiliates have, from time to time, performed, or may in the future perform, various financial advisory and investment banking services for the Company, for which they received or will receive customary fees and expenses.
Item 1.01. Financial Statements and Exhibits.
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Exhibit No. |
Description |
| 10.1 | Credit Agreement |
HUNTINGTON INGALLS INDUSTRIES, INC. ExhibitEX-10.1 2 d496940dex101.htm EX-10.1 EX-10.1 Exhibit 10.1 EXECUTION VERSION CREDIT AGREEMENT dated as of November 22,…To view the full exhibit click here
About HUNTINGTON INGALLS INDUSTRIES, INC. (NYSE:HII)
Huntington Ingalls Industries, Inc. (HII) designs, builds, overhauls and repairs ships for the United States Navy and the United States Coast Guard. The Company is the designer, builder and refueler of nuclear powered aircraft carriers, a builder of amphibious assault and expeditionary warfare ships for the United States Navy and the sole builder of National Security Cutters (NSCs) for the United States Coast Guard. The Company operates its shipbuilding business through Huntington Ingalls Incorporated subsidiary, which is organized into two segments: Ingalls Shipbuilding (Ingalls), which includes non-nuclear ship design, construction, repair and maintenance businesses, and Newport News Shipbuilding (Newport News), which includes the nuclear ship design, construction, overhaul, refueling, and repair and maintenance businesses. It designs and builds nuclear-powered submarines for the United States Navy and builds the Navy’s fleet of DDG51 Arleigh Burke-class destroyers.
