Emerson Electric Co. has secured a new $2 billion revolving credit facility set to mature in one year. This short-term credit line is designed primarily to serve as a liquidity back-up for the company’s commercial paper borrowings and to support general corporate needs. The new facility replaces a similar $3 billion credit agreement that expired in February 2026.
This move reflects Emerson’s ongoing approach to maintaining flexible, unsecured access to capital markets without immediate plans to draw on the facility. The credit line involves several major banks and offers multiple interest rate options, providing the company with financial agility over the coming year.
Key details:
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Emerson entered into a $2 billion 364-day revolving credit agreement on February 10, 2026, which expires on February 9, 2027.
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The facility is unsecured, meaning it is not backed by specific company assets.
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It replaces a $3 billion 364-day credit agreement that expired by its terms on February 11, 2026.
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No borrowings or letters of credit are currently outstanding under the new facility, and Emerson has no immediate plans to draw funds.
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The credit line supports general corporate purposes, including serving as a liquidity back-up for Emerson’s commercial paper program.
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The agreement allows the company to choose among various interest rate options when borrowing.
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Emerson may designate eligible subsidiaries as borrowers under the facility; in such cases, Emerson guarantees their obligations unconditionally and irrevocably.
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The facility requires Emerson to pay fees on the total available amount, regardless of usage.
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The credit agreement includes standard representations, warranties, covenants, and default provisions typical for such arrangements.
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The lending syndicate includes JPMorgan Chase Bank as agent, with Bank of America, Citibank, and Goldman Sachs acting as syndication agents.
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The lenders and their affiliates may continue to provide other banking and advisory services to Emerson and its affiliates in the ordinary course of business.
Implications for investors:
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Emerson maintains strong liquidity management by renewing a sizable revolving credit facility, albeit at a reduced size compared to the prior year’s $3 billion line.
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The unsecured nature of the facility indicates confidence from lenders in Emerson’s creditworthiness without requiring collateral.
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The facility’s role as a back-up for commercial paper suggests Emerson’s preference for short-term, flexible funding sources rather than long-term debt issuance at this time.
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The ability to designate subsidiaries as borrowers with Emerson’s guarantee provides operational flexibility for managing capital needs across the corporate structure.
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No current borrowings under the facility mean Emerson is not increasing its debt load immediately but retains ready access to capital if needed within the next year.