On February 2, 2024, Cisco Systems, Inc. (Cisco) announced the entry into a Third Amended and Restated Credit Agreement, providing a five-year $5.0 billion unsecured revolving credit facility, with Bank of America acting as the administrative agent. The facility includes various sublimits for standby letters of credit, swingline loans, and borrowings in non-U.S. currencies, with an option to increase borrowing up to $7.0 billion. The agreement allows for a potential extension of the credit facility's maturity by an additional year, twice. Interest rates for loans under this agreement are tied to Cisco's senior debt credit ratings and vary based on the currency of the loan. Cisco is also subject to a quarterly commitment fee and fees on outstanding letters...Show More

On February 2, 2024, Cisco Systems, Inc. (Cisco) announced the entry into a Third Amended and Restated Credit Agreement, providing a five-year $5.0 billion unsecured revolving credit facility, with Bank of America acting as the administrative agent. The facility includes various sublimits for standby letters of credit, swingline loans, and borrowings in non-U.S. currencies, with an option to increase borrowing up to $7.0 billion. The agreement allows for a potential extension of the credit facility's maturity by an additional year, twice. Interest rates for loans under this agreement are tied to Cisco's senior debt credit ratings and vary based on the currency of the loan. Cisco is also subject to a quarterly commitment fee and fees on outstanding letters of credit, which are contingent on its credit ratings. The credit agreement includes customary representations, warranties, affirmative and negative covenants, and requires Cisco to maintain a minimum EBITDA to interest expense ratio. Events of default are outlined, with consequences including the potential acceleration of payment obligations. BofA Securities, Inc. and other financial institutions are joint lead arrangers and bookrunners for the facility. Cisco maintains various commercial relationships with the lenders, and the lenders have provided, and may continue to provide, various services to Cisco for customary compensation. Additionally, on February 6, 2024, Cisco instructed Citibank, N.A. to increase the size of its commercial paper program from $10 billion to $15 billion.