News Column

FLUOR CORP FILES (8-K) Disclosing Entry into a Material Definitive Agreement, Termination of a Material Definitive Agreement, Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

June 3, 2014

Item 1.01. Entry into a Material Definitive Agreement.



On May 28, 2014, Fluor Corporation (the "Company") entered into a $1,700,000,000 Revolving Loan and Letter of Credit Facility Agreement dated as of May 28, 2014 among the Company, BNP Paribas, as Administrative Agent and an Issuing Lender, Bank of America, N.A., as Syndication Agent, Citibank, N.A. and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Co-Documentation Agents, and the lenders party thereto from time to time (the "Credit Facility").

On that same day, the existing $1,200,000,000 Revolving Performance Letter of Credit Facility Agreement dated as of December 14, 2010 was terminated and all outstanding letters of credit thereunder are being assigned or otherwise transferred to the Credit Facility.

The Credit Facility: (i) provides support for the issuance of up to $1,700,000,000 of performance standby letters of credit, (ii) has a sub-limit of $750,000,000 for cash drawings and the issuance of financial letters of credit, (iii) has a maturity date of May 27, 2019, and (iv) has an accordion feature whereby the Credit Facility may be increased in increments of at least $25,000,000 or any whole multiple of $10,000,000 in excess thereof up to an additional $500,000,000 (not to exceed a maximum of $2,200,000,000) subject to certain conditions. Interest on borrowings under the Credit Facility would be charged at the Eurodollar Rate or an alternate Base Rate, in each case plus applicable margins that fluctuate based upon the applicable ratings of the Company's non-credit-enhanced senior unsecured long-term debt.

In addition, the Credit Facility:

provides for a letter of credit fee to be paid when letters of credit are issued and a commitment fee for the unused amounts under the Credit Facility, which will fluctuate based on the Company's applicable ratings;

requires that the Company maintain a maximum ratio of consolidated debt to consolidated tangible net worth of 1.00 to 1.00;

contains restrictive covenants (subject, in each case, to certain customary exceptions and amounts) which among other things: (x) cap at $750,000,000 the aggregate amount of debt for the Company's subsidiaries, (y) limit the Company's ability to create liens securing other debt, and (z) place certain limitations on the Company's ability to engage in acquisitions, mergers and dispositions;

contains customary events of default, upon the occurrence of which and after any applicable grace period, the lenders will have the ability to accelerate all outstanding loans thereunder, require cash collateralization of all outstanding letters of credit and terminate all commitments;

provides that the Company may terminate or reduce the Credit Facility at any time; and

contains customary representations and warranties.

In conjunction with the Credit Facility, the Company also amended its existing $1,800,000,000 Revolving Loan and Letter of Credit Facility Agreement dated as of November 9, 2012 maturing November 8, 2017 (the "Revolving Credit Facility") to (i) extend the maturity date of the Revolving Credit Facility to May 27, 2019, (ii) increase the cap on the aggregate amount of debt for Company subsidiaries from $600,000,000 to $750,000,000 and (iii) update certain provisions to match the terms of the Credit Facility.

The foregoing summary of some of the terms of the Credit Facility and the Revolving Credit Facility is qualified in its entirety by reference to the complete text of each such facility, copies of which have will be provided in our next Form 10-Q filing.

Item 1.02. Termination of a Material Definitive Agreement.



The information set forth under Item 1.01 of this report is hereby incorporated into this Item 1.02 by reference.

2



--------------------------------------------------------------------------------

Item 2.03. Creation of a Direct Financial Obligation or an



Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information set forth under Item 1.01 of this report is hereby incorporated into this Item 2.03 by reference.

3



--------------------------------------------------------------------------------


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Edgar Glimpses


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters