May 13, 2008
CLEVELAND … Diversified industrial manufacturer Eaton Corporation (NYSE:ETN) today announced it has entered into a new $500 million revolving credit facility. The facility replaces two existing facilities totaling $300 million that were scheduled to expire in May 2008.
The new credit facility, which expires in May 2013, is supported by a consortium of 12 financial institutions led by Citi and KeyBank N.A. The new facility increases Eaton's commercial paper backstop capacity to $1.7 billion, excluding capacity remaining under the bridge revolving credit facility that was announced in January.
"We are pleased to have increased the company's available liquidity, preserving needed financial flexibility for the future," said Richard H. Fearon, executive vice president - chief financial and planning officer. "Our success in closing this transaction in today's tight credit markets, combined with our successful common share offering in April, is a favorable reflection of the market's confidence in Eaton and our business model."
Eaton Corporation is a diversified industrial manufacturer with 2007 sales of $13.0 billion. Eaton is a global leader in electrical systems and components for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; hydraulics, fuel and pneumatic systems for commercial and military aircraft; intelligent truck drivetrain systems for safety and fuel economy; and automotive engine air management systems, powertrain solutions and specialty controls for performance, fuel economy and safety. Eaton has 79,000 employees and sells products to customers in more than 150 countries. For more information, visit www.eaton.com
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