Newell Brands Amends Credit Agreement, Sets New Covenants

Newell Brands (NWL) has released an update to notify the public and investors about an entry into a material definitive agreement.

Newell Brands Inc. has amended its credit agreement with a group of banks, reducing its borrowing limit from $1.5 billion to $1 billion and introducing new financial covenants that measure the company’s asset coverage and debt levels. This amendment also requires Newell Brands to secure its credit obligations with collateral, including receivables, inventory, and intellectual property. The new terms set scaled targets for debt-to-EBITDA ratios over several fiscal quarters and establish a minimum collateral-to-debt coverage ratio, reflecting a strategic financial restructuring to align with the company’s evolving capital management goals.

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For a comprehensive understanding of the announcement, you can read the full document here.