Oct. 1 (Bloomberg) -- TRW Automotive Holdings Corp., the world’s biggest vehicle-safety equipment supplier, increased the size and extended the maturity on a revolving line of credit.
JPMorgan Chase & Co. and Bank of America Corp. arranged the $1.4 billion loan that will come due in September 2017, the company said today in a regulatory filing. It was increased from $1 billion and was originally set to expire in November 2014.
Interest on the credit line will initially pay 1.75 percentage points more than the London interbank offered rate and will be tied to leverage, or earnings before interest, taxes, depreciation and amortization, the Livonia, Michigan-based company said.
“Our positive outlook and strong capital structure should allow TRW to continue making the necessary investments in our business in support of future growth while enhancing returns to our shareholders,” John Plant, chief executive officer, said today in a statement distributed by PR Newswire.
TRW today also announced a $1 billion share repurchase program that will begin in the fourth quarter and last two years.
In a revolving line of credit, money can be borrowed again once it is repaid.
To contact the reporter on this story: Krista Giovacco in New York at firstname.lastname@example.org.
To contact the editor responsible for this story: Faris Khan at email@example.com.