Kimberly-Clark Corporation (KCC) is a leading multinational consumer goods company based in the United States. The company has recently entered into a new credit agreement that provides it with access to a $2.25 billion revolving credit facility. This new credit agreement will replace Kimberly-Clark`s previous credit agreement, which was set to expire in 2022.

The new credit agreement allows Kimberly-Clark to borrow money for various purposes, including working capital, capital expenditures, acquisitions, and refinancing of existing debt. The credit facility has a five-year term and provides KCC with the flexibility to borrow funds from a group of banks at any time during the term.

The credit agreement also includes financial covenants that KCC must meet to maintain access to the credit facility. These covenants include minimum ratios for leverage, interest coverage, and fixed charge coverage. Failure to meet these covenants could result in a default under the agreement and may restrict Kimberly-Clark`s ability to borrow funds.

The new credit agreement demonstrates Kimberly-Clark`s financial strength and stability. The company`s solid financial position and strong credit rating have enabled it to secure this new credit facility at favorable terms. The credit agreement also provides Kimberly-Clark with greater flexibility to pursue its strategic objectives, including potential acquisitions and investments in research and development.

In conclusion, the new credit agreement signed by Kimberly-Clark Corporation is a significant development for the company, providing it with access to a substantial source of funding to support its business operations. It reflects Kimberly-Clark`s financial strength, stability, and strategic focus on growth and innovation. As KCC continues to execute its plans to deliver long-term value for its shareholders, this new credit facility will undoubtedly play an essential role in achieving those goals.