BORGWARNER INC FILES (8-K) Disclosing Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant, Financial Statements and Exhibits

Edgar Glimpses |

Item 1.01. Entry Into a Material Definitive Agreement

On June 30, 2014, BorgWarner Inc. (the "Company") entered into a Second Amended and Restated Credit Agreement (the "Credit Agreement") with Bank of America, N.A., as administrative agent, and other lenders, under which the lenders committed to provide loans under an unsecured revolving credit facility (the "Credit Facility") in an initial maximum principal amount of up to $1 billion, which may be increased by an additional principal amount of up to $250 million upon the Company's request and pursuant to the agreement of lenders and the other conditions set forth in the Credit Agreement.

Bank of America, N.A. is the administrative agent, swingline lender and an issuing bank. Deutsche Bank Securities Inc., Citibank, N.A., HSBC Bank USA, National Association ("HSBC"), PNC Bank, National Association, and Wells Fargo Bank, National Association are the co-syndication agents for the Credit Facility. Merrill Lynch, Pierce, Fenner & Smith Incorporated, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., HSBC, PNC Capital Markets LLC, and Wells Fargo Securities, LLC are the joint lead arrangers and joint book managers for the Credit Facility. The Credit Agreement amends and restates in its entirety the Credit Agreement dated as of June 30, 2011, among the Company and Bank of America, N.A., as administrative agent, and other lenders identified therein (the "Existing Credit Agreement")

The commitments of the lenders under the Credit Facility mature on June 30, 2019, unless extended by the lenders, at their option upon request by the Company. Interest under the Credit Facility accrues at varying rates based upon (i) the type of borrowing under the Credit Facility and (ii) the rating by certain specified rating agencies of the Company's outstanding senior, unsecured, long-term indebtedness as of the applicable date of borrowing.

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The Credit Agreement includes a financial covenant that requires the Company to maintain a consolidated leverage ratio (i.e., as at the last day of any period of four consecutive fiscal quarters of the Company, the ratio of consolidated net debt on such day to consolidated EBITDA for such period) of not more than 3.25 to 1.0.

The Credit Agreement contains customary events of default, including payment defaults, breaches of representations and warranties, covenant defaults, cross-defaults to similar obligations, customary ERISA defaults, certain events of bankruptcy and insolvency, judgment defaults or a change in control of the Company. The Credit Agreement also contains a provision permitting the lenders to accelerate the repayment of all loans outstanding under the Credit Facility during an event of default.

None of the Company or any of its affiliates has a material relationship with any lender in the Credit Facility other than in respect of the Credit Facility.

Any proceeds from the Credit Facility will be used by the Company for general corporate purposes. No new borrowings were made at the closing of the Credit Agreement and no loans were outstanding under the Existing Credit Agreement at closing.

The descriptions of the Credit Agreement are qualified in their entirety by reference to the full text of the Credit Agreement, the form of which is attached hereto as Exhibit 10.1 and is incorporated herein by reference.


Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

The information under Item 1.01 of this report is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits. The following exhibits are being filed as part of this Report.

Exhibit Number Description 10.1 Second Amended and Restated Credit Agreement dated as of June 30, 2014, among BorgWarner Inc., as Borrower, the Administrative Agent named therein, the Co-Syndication Agents named therein, and the Lenders that are parties thereto.


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