Cummins Inc. announced today that it has executed a new three-year revolving credit agreement with a group of banks, and that it intends to issue $200 million of senior notes due in 2010.
The secured credit agreement, led by J.P. Morgan and Citigroup, provides for borrowings of up to $385 million and replaces the existing revolving credit agreement, which matures in January.
The net proceeds from the senior note offering will be used to repay Cummins existing 6.25% notes due March 1 to repay outstanding borrowings under Cummins revolving credit facility and to repay certain short-term loans.
The balance of the net proceeds will be available for general corporate purposes, the company said.
