8-K filings in June 2024, explained

Cummins renews two credit facilities, each with up to $2.0 billion in borrowing capacity

On June 3, 2024, Cummins entered into a new 5-year credit agreement and a new 364-day credit agreement, each allowing borrowings of up to $2.0 billion outstanding at any time, with JPMorgan Chase Bank as administrative agent. Both agreements replace earlier versions, and the company will guarantee all borrowings by its subsidiary borrowers. The filing describes the agreements as a source of committed borrowing capacity and does not report any amount drawn.

• 5-year credit agreement allows up to $2.0 billion outstanding and matures June 3, 2029.
• 364-day credit agreement allows up to $2.0 billion outstanding until its Commitment Termination Date of June 2, 2025, with an option to convert revolving loans into term loans maturing one year later for a 0.5% fee.
• Each facility can be increased by up to $1.0 billion, subject to conditions including lender consent.
• Based on current A2 (Moody's) and A (S&P) senior unsecured ratings, the applicable rates would be 0.75% (364-day) and 0.875% (5-year), and a financial covenant caps the net debt to total capital ratio at 0.65:1.