Cerner corporation enters into a second amendment to third amended and restated credit agreement

On november 5, 2019, cerner corporation entered into a second amendment to third amended and restated credit agreement with a syndicate of lenders identified in the credit agreement. u.s. bank national association acts as administrative agent under the credit agreement. pursuant to the amendment, the company exercised its right to increase the total revolving credit commitments under the credit agreement by $300 million to $1 billion and pnc bank, national association was added as an additional lender under the credit agreement. in addition, the amendment clarified and modified certain representations and covenants. the credit agreement provides for an unsecured five-year revolving credit facility and includes: a revolving credit loan facility of up to $1 billion at any time outstanding, and a letter of credit facility of up to $100 million at any time outstanding (which is a sub-facility of the $1 billion revolving credit loan facility). the credit agreement also includes an accordion feature allowing an increase of the credit facility of up to an additional $200 million ($1.2 billion in the aggregate) at any time outstanding, subject to the satisfaction of specified conditions. as of the date of the amendment, $600 million was outstanding under the credit agreement, in addition to letters of credit. pricing under the credit agreement remained the same. the company is required to pay certain fees in connection with the credit agreement. in addition, the company must pay commitment fees on a quarterly basis with respect to the unutilized portion of the commitments under the credit agreement, and the company is required to pay certain fees to the administrative agent for administrative services.
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