Zoetis Inc. (NYSE:ZTS) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement.
revolving credit agreement (the Credit Agreement) with a
syndicate of banks, JPMorgan Chase Bank, N.A., as administrative
agent, and Bank of America, N.A., Barclays Bank PLC, Citibank,
N.A. and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as syndication
agents, providing for a five-year $1.0 billion senior unsecured
revolving credit facility. The Credit Agreement replaced the
Companys existing revolving credit facility. Subject to certain
conditions, the Company will have the right to increase the
commitments under the Credit Agreement to up to $1.5 billion. The
Credit Agreement is not guaranteed by the Companys subsidiaries.
Companys option, at rates equal to either: (a) a base rate or (b)
a Eurodollar rate, in each case plus an applicable margin.
Additionally, the Company will pay a facility fee on the
commitments under the Credit Agreement, regardless of whether
borrowings are outstanding under the Credit Agreement. The
applicable margins and the facility fee are determined based on
the public ratings of the Companys senior unsecured non-credit
enhanced long-term debt. Interest on borrowings and the facility
fee are generally payable quarterly in arrears; however, for
loans bearing interest based on a Eurodollar rate with a term
shorter than three months, interest is payable at the end of such
term.
commitment under the Credit Agreement, in whole or in part,
without penalty or premium, subject to certain minimum amounts
and increments and the payment of customary breakage costs. No
mandatory prepayment is required under the Credit Agreement.
Company to not exceed a maximum total leverage ratio and to
maintain a minimum interest coverage ratio. In addition, the
Credit Agreement contains customary affirmative and negative
covenants that, among other things, limit or restrict the
Companys and its subsidiaries ability, subject to certain
exceptions, to incur liens, merge, consolidate or sell, transfer
or lease assets and incur priority indebtedness. The Credit
Agreement also contains customary events of default.
intended to be complete and is qualified in its entirety by
reference to the full text of the Credit Agreement, a copy of
which is attached as Exhibit 10.1 to this Current Report on Form
8-K and is incorporated herein by reference.
Agreement dated as of December 21, 2012 among the Company, the
lenders party thereto and JPMorgan Chase Bank, N.A., as
administrative agent, (the Prior Credit Agreement) and all
commitments to extend further credit thereunder were therefore
terminated. The Prior Credit Agreement was scheduled to expire in
December 2017.
Obligation under an Off-Balance Sheet Arrangement of a
Registrant.
by reference into this Item 2.03.
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10.1
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Revolving Credit Agreement dated as of December 21, 2016,
among Zoetis Inc., the lenders party thereto, the issuing banks party thereto and JPMorgan Chase Bank, N.A., as administrative agent. |
About Zoetis Inc. (NYSE:ZTS)
Zoetis Inc. is engaged in the discovery, development, manufacture and commercialization of animal health medicines and vaccines, with a focus on both livestock and companion animals. The Company has a diversified business, marketing products across over eight core species: cattle, swine, poultry, sheep and fish (collectively, livestock), and dogs, cats and horses (collectively, companion animals), and within over five product categories: anti-infectives, vaccines, parasiticides, medicated feed additives and other pharmaceuticals. It operates through two segments: the United States and International. Within each of these segments, it offers a diversified product portfolio for both livestock and companion animal customers. In addition, its Client Supply Services (CSS) organization provides contract manufacturing services to third parties. It also offers other product categories, such as nutritionals and agribusiness. Zoetis Inc. (NYSE:ZTS) Recent Trading Information
Zoetis Inc. (NYSE:ZTS) closed its last trading session up +0.52 at 53.78 with 1,942,469 shares trading hands.
