The Investor
03 Jun 2025, 13:06
On June 2, 2025, Cummins Inc. entered into two new unsecured credit agreements with JPMorgan Chase as administrative agent:
• A 5-Year Credit Agreement maturing June 2, 2030, and a 3-Year Credit Agreement maturing June 2, 2028.
• Each facility allows for up to $2 billion in revolving credit, swingline loans, and letters of credit.
• Both agreements replace and expand upon previous credit arrangements that expired or were superseded on the same date.
Cummins may increase each facility by up to an additional $1 billion under certain conditions. Loans will bear interest based on benchmark rates plus a margin determined by Cummins’ credit rating (currently 0.75%). The agreements include financial covenants, such as a debt-to-capitalization ratio not exceeding 0.65:1. Cummins guarantees borrowings by its subsidiaries under both agreements.
• A 5-Year Credit Agreement maturing June 2, 2030, and a 3-Year Credit Agreement maturing June 2, 2028.
• Each facility allows for up to $2 billion in revolving credit, swingline loans, and letters of credit.
• Both agreements replace and expand upon previous credit arrangements that expired or were superseded on the same date.
Cummins may increase each facility by up to an additional $1 billion under certain conditions. Loans will bear interest based on benchmark rates plus a margin determined by Cummins’ credit rating (currently 0.75%). The agreements include financial covenants, such as a debt-to-capitalization ratio not exceeding 0.65:1. Cummins guarantees borrowings by its subsidiaries under both agreements.