FILE PHOTO – A logo of Honeywell is pictured on their booth during the European Business Aviation Convention & Exhibition (EBACE) in Geneva, Switzerland, May 22, 2017. REUTERS/Denis Balibouse
(Reuters) – Honeywell International Inc (HON.N) said on Friday it had renewed a revolving credit agreement for $1.5 billion, to be used for general corporate purposes when needed.
The 364-day Credit Agreement was signed with Citibank (C.N) and JPMorgan Chase (JPM.N), Honeywell said in a filing, adding that the loan does not does not restrict its ability to pay dividend.
Money that Honeywell draws against the revolving credit agreement should be repaid no later than April 9, 2021, the company said.
The agreement comes after the industrial conglomerate entered into a $6 billion loan agreement last month to bolster liquidity as the fast-spreading coronavirus pandemic wreaks havoc on the global economy.
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 last month.
Honeywell has reported a surge in demand for its protective face masks in North America, Europe, India and China, following the novel coronavirus outbreak.
Reporting by Noor Zainab Hussain in Bengaluru; Editing by Sandra Maler