| Item 1.02 |
Termination of a Material Definitive Agreement. |
In connection with Broadcom Inc.’s (the “Company”) entry into the Credit Agreement (as defined and discussed in more detail in Item 8.01 below), on January 13, 2025 (the “Closing Date”) the Company terminated all outstanding commitments and repaid all outstanding obligations under the credit agreement, dated as of January 19, 2021 (as previously amended, supplemented or modified, the “Existing Credit Agreement”), among the Company, the lenders and L/C issuers named therein, Bank of America, N.A., as administrative agent, and the other parties from time to time party thereto.
The Existing Credit Agreement originally provided for a $7.5 billion unsecured revolving credit facility. The Company had no outstanding borrowings under the Existing Credit Agreement immediately prior to its termination. Absent termination, the revolving credit facility under the Existing Credit Agreement would have matured in 2026. Borrowings under the Existing Credit Agreement bore interest at a fluctuating rate per annum equal to, at the Company’s option, the alternate base rate or Term SOFR, in each case, plus an applicable margin that was calculated based on the Company’s credit ratings from time to time.
Many of the lenders under the Existing Credit Agreement and/or their affiliates have in the past performed, and may in the future from time to time perform, investment banking, financial advisory, lending, hedging, cash management and/or commercial banking services, or other services in the ordinary course of business for the Company and its subsidiaries (including in connection with the transactions described in this Current Report on Form 8-K), for which they have received, and may in the future receive, customary compensation and expense reimbursement.
On the Closing Date, the Company entered into a credit agreement with the lenders and L/C issuers named therein, Bank of America, N.A., as administrative agent, and the other parties from time to time party thereto (the “Credit Agreement”). The Credit Agreement provides for a $7.5 billion five-year unsecured revolving credit facility (the “Revolving Facility”). The proceeds of any borrowings under the Revolving Facility will be used for general corporate purposes. The Existing Credit Agreement was terminated in connection with, and as a condition to, entering into the Credit Agreement, as discussed in more detail in Item 1.02 above.
The aggregate commitment of all revolving lenders under the Credit Agreement is equal to $7.5 billion, of which up to $500 million may be utilized for the issuance of multicurrency letters of credit. The issuance of letters of credit reduces the aggregate amount otherwise available under the Revolving Facility for the making of revolving loans. The Company had no borrowings outstanding under the Revolving Facility on the Closing Date.
