UPDATE 1-Honeywell borrows $6 bln to boost liquidity in coronavirus fight
(Adds details on loan, background)
March 31 (Reuters) – Honeywell International Inc said on Tuesday it had entered into a $6 billion loan agreement to bolster liquidity as the fast-spreading coronavirus pandemic wreaks havoc on the global economy.
The industrial conglomerate said it entered the two-year delayed draw term loan agreement to maximize financial flexibility in the event that current economic conditions persist or worsen.
“The term loan we announced today will further strengthen our resilience in uncertain times,” Chief Executive Officer Darius Adamczyk said.
The loan agreement was signed with Citibank, Bank of America, JPMorgan Chase and Wells Fargo, Honeywell said.
The company, which makes everything from aircraft engine parts to warehouse automation equipment, had $10 billion in cash at the end of 2019, with its pension liability overfunded, it said in a statement.
Honeywell said last month there was a surge in demand for its protective face masks in North America, Europe, India and China, following the coronavirus outbreak.
The company reaffirmed its first-quarter and full-year forecasts earlier this month.
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