| Item 1.01 | Entry into a Material Definitive Agreement. |
Revolving Credit Agreement
On December 12, 2018, Newell Brands Inc. (the “Company”) and certain of its subsidiaries, as subsidiary borrowers (the “Subsidiary Borrowers”), entered into a five-year revolving credit agreement (as amended or supplemented from time to time, the “Revolving Credit Agreement”) with a syndicate of banks led by JPMorgan Chase Bank, N.A., as Administrative Agent. The Revolving Credit Agreement amends and restates in its entirety the Company’s existing revolving credit agreement, dated as of January 26, 2016, among the Company, JPMorgan Chase Bank, N.A., as administrative agent, and the other agents and lenders party thereto.
The Revolving Credit Agreement provides for an unsecured syndicated revolving credit facility with a maturity date of December 12, 2023 and aggregate commitments of $1,250,000,000. The Company may from time to time request increases in the aggregate commitments to up to $1,750,000,000 upon the satisfaction of certain conditions, and may also request extension of the maturity date of the facility (subject to lender approval) for additionalone-year periods. Under the facility, the Company may borrow funds on a variety of interest rate terms. The facility provides for the issuance of up to $100,000,000 of letters of credit for the account of the Company, so long as there is a sufficient amount available for borrowing under the facility. Subject to the terms set forth in the Revolving Credit Agreement, the Company and the Subsidiary Borrowers may borrow, prepay andre-borrow amounts under the facility at any time prior to termination of the facility. The proceeds from any borrowings under the facility are expected to be used for general corporate purposes.
The Revolving Credit Agreement contains customary representations and warranties, covenants and events of default. The covenants set forth in the Revolving Credit Agreement include certain affirmative and negative operational and financial covenants, including, among other things, restrictions on the Company’s ability to incur certain liens, make fundamental changes to its business or engage in transactions with affiliates; limitations on the amount of indebtedness that may be incurred by the Company’s subsidiaries; and a requirement that the Company maintain certain Interest Coverage and Total Indebtedness to Total Capital ratios, as defined in the Revolving Credit Agreement. In addition, the Revolving Credit Agreement provides for certain events of default, the occurrence of which could result in the acceleration of the Company’s obligations under the Revolving Credit Agreement and the termination of the lenders’ obligation to extend credit pursuant to the Revolving Credit Agreement.
Bridge Loan Agreement
In addition, on December 13, 2018, the Company entered into a loan agreement (as amended or supplemented from time to time, the “Bridge Loan Agreement”) with Credit Suisse AG, Cayman Islands Branch, as Lender and Administrative Agent. The proceeds of the Bridge Loan Agreement are expected to be used as necessary to finance a portion of the recently announced tender offers, including any fees and expenses related thereto.
The Bridge Loan Agreement provides for a $1,000,000,000 senior unsecured term loan facility with a maturity date of June 14, 2019. The Bridge Loan Agreement requires the Company to repay any outstanding indebtedness on the maturity date, the then unpaid principal amount of the loans outstanding under the Bridge Loan Agreement. The Bridge Loan Agreement also provides for voluntary prepayment of loans without premium or penalty, subject to certain conditions and exceptions.
The Bridge Loan Agreement contains customary representations and warranties, covenants and events of default. The covenants set forth in the Bridge Loan Agreement include certain affirmative and negative operational and financial covenants, including, among other things, restrictions on the Company’s ability to incur certain liens, make fundamental changes to its business or engage in transactions with affiliates; limitations on the amount of indebtedness that may be incurred by the Company’s subsidiaries; and a requirement that the Company maintain certain Interest Coverage and Total Indebtedness to Total Capital ratios, as defined in the Bridge Loan Agreement. In addition, the Bridge Loan Agreement provides for certain events of default, the occurrence of which could result in the acceleration of the Company’s obligations under the Bridge Loan Agreement.
General
The foregoing summaries of the Revolving Credit Agreement and Bridge Loan Agreement are qualified in their entirety by reference to the Revolving Credit Agreement and Bridge Loan Agreement, copies of which are filed as Exhibit 10.1 and Exhibit 10.2 hereto, respectively, and are incorporated herein by reference.
