Lockheed Martin replaced its 364-day credit line three months before the old one was due to expire, and paid nothing to get out of it
Item 1.01 of Thursday evening's filing covers two credit agreements, and the first of them replaced a line that still had three months to run.
Lockheed Martin entered a new 364-day revolving credit agreement on 24 August and terminated the 364-day agreement dated 5 December 2025 in the process. That earlier facility had been scheduled to terminate on 4 December 2026. No early termination penalties were incurred.
The new facility is $2.25bn, unsecured, and available for any lawful corporate purpose including support for commercial paper borrowings. Nothing was drawn at closing. It matures on 23 August 2027, with an option to continue any outstanding borrowings as non-revolving term loans for a further year to 23 August 2028, for a fee of 0.50 percent of the principal converted.
The pricing is a ratings grid
Borrowings carry interest at the company's option: a base rate, term SOFR plus a margin, daily simple SOFR plus the same margin, or a rate set by competitive bid. The margin runs from 0.585 percent to 1.085 percent and moves with the credit ratings on the company's senior unsecured long-term debt. A facility fee of 0.04 percent accrues on the aggregate commitments and is paid quarterly in arrears, whether or not anything is borrowed.
There is no financial maintenance covenant.
The events of default are the conventional list, and two of them carry a number. An unsatisfied judgment above $300m against the company or a restricted subsidiary is one. Specified changes in the composition of the board over any two-year period are folded into the change of control provision, which is the other.
Bank of America is administrative agent and JPMorgan Chase is syndication agent. Citibank, Credit Agricole Corporate and Investment Bank, Mizuho and Wells Fargo are documentation agents.
The five-year line moved out a year on the same day
The company also signed an extension agreement on its existing $3bn revolving credit agreement, which dates from 24 August 2022. The expiration goes from 24 August 2030 to 24 August 2031. Everything else in that agreement stays as it was.
Taken together the company now holds $5.25bn of committed revolving capacity, none of it drawn at signing, with the shorter facility capable of being termed out to 2028 at its own election.
