Item 1.01. Entry into a Material Definitive Agreement.
On September 18, 2023, 3M Company (the "Company") entered into Amendment No. 2 to the Credit Agreement (the "Amendment"), amending the Company's $4.25 billion five-year revolving credit agreement, dated May 11, 2023 (as amended from time to time, the "Credit Agreement"), with JPMorgan Chase Bank, N.A. as administrative agent, Citibank, N.A. as syndication agent, Deutsche Bank Securities Inc. and Bank of America, N.A. as documentation agents, and a syndicate of lenders party thereto.
The Credit Agreement contains a covenant requiring the Company to maintain an EBITDA to Interest Ratio (as defined in the Credit Agreement) of not less than 3.0 to 1.0 as of the end of each fiscal quarter of the Company. The Amendment provides that charges related to, arising out of or in connection with the settlement agreement entered into by the Company and the Company's wholly-owned subsidiary, Aearo Technologies LLC (together with certain of its related entities, the "Aearo Entities") to resolve, to the fullest extent possible, all litigation and alleged claims, including potential future claims that may be filed, involving the combat arms earplugs sold or manufactured by the Aearo Entities and/or the Company, as disclosed by the Company in a Current Report on Form 8-K filed on August 29, 2023, will be added back to the Company's consolidated net income when determining EBITDA for purposes of calculating the EBITDA to Interest Ratio.
The foregoing description of the Amendment is qualified in its entirety by reference to the full text of the Amendment, a copy of which is filed as Exhibit 10.1 hereto and incorporated by reference herein.
Attachments
Disclaimer
3M Company published this content on 18 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 September 2023 20:09:24 UTC.