Applied Materials adds 364-day $2.0B credit line

Rhea-AI Filing Summary

Applied Materials, Inc. entered into a new 364-day revolving credit agreement providing up to $2.0 billion in unsecured borrowing capacity, with the option to increase the facility to $3.0 billion if additional lender commitments are obtained and customary conditions are met. The facility can be used for general corporate purposes.

Borrowings will bear interest at a rate based on either Term SOFR plus a margin of 0.50%–1.00%, or an alternative base rate formula tied to federal funds, the prime rate, or Term SOFR plus 1.0%. Applied must also pay commitment fees of 0.04%–0.10% on unused commitments. The agreement includes customary covenants, including a minimum consolidated adjusted EBITDA-to-net interest expense ratio of 3.0 to 1.0, and standard events of default. The facility matures on September 24, 2026, with an option to convert outstanding loans into term loans maturing on September 24, 2027 for a 0.75% conversion fee. Applied has not borrowed under this facility as of the report date.

Insights

Corporate finance and capital structure analyst

Applied Materials adds a sizable, flexible credit backstop without drawing on it yet.

Applied Materials has arranged a $2.0 billion unsecured revolving credit facility, with the possibility to expand to $3.0 billion. A 364-day tenor suggests this is primarily a short-term liquidity backstop rather than long-term funding, supporting working capital or opportunistic corporate uses on a revolving basis.

Pricing is tied to public debt ratings, with interest based on Term SOFR plus a 0.50%–1.00% margin or an alternative base rate, and commitment fees of 0.04%–0.10% on unused capacity. The financial covenant requiring a consolidated adjusted EBITDA-to-net interest expense ratio of at least 3.0 to 1.0 is relatively standard for an investment-grade style facility.

The maturity on September 24, 2026 and the option to convert outstanding balances into term loans maturing on September 24, 2027 for a 0.75% fee add rollover flexibility if credit conditions tighten. As of the report, no borrowings have been made, so the immediate balance sheet impact is limited and the main effect is enhancing available liquidity.

8-K Event Classification

2 items: 1.01, 2.03

2 items

Item 1.01 Entry into a Material Definitive Agreement Business

The company signed a significant contract such as a merger agreement, credit facility, or major partnership.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement Financial

The company incurred a new significant debt or off-balance-sheet obligation.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What new credit facility did Applied Materials (AMAT) establish?

Applied Materials entered into a 364-day revolving credit agreement providing up to $2.0 billion in unsecured borrowing capacity, with an option to increase the facility to $3.0 billion subject to additional lender commitments and customary conditions.

What are the key interest and fee terms of Applied Materials' new credit facility?

Borrowings will accrue interest at either Term SOFR plus 0.50%–1.00%, depending on Applied’s public debt credit ratings, or an alternative base rate formula. Applied must also pay commitment fees of 0.04%–0.10% per year on unused commitments, plus customary agency fees.

What financial covenant is included in Applied Materials’ new credit agreement?

The agreement requires Applied Materials to maintain a ratio of consolidated adjusted EBITDA for the last four fiscal quarters to consolidated net interest expense of at least 3.00 to 1.00 as of the end of each fiscal quarter.

When does Applied Materials’ new revolving credit facility mature?

The revolving credit facility has a maturity date of September 24, 2026. If loans are outstanding then, Applied may convert all or part of them to term loans maturing on September 24, 2027 by paying a 0.75% fee on the converted amount, subject to customary conditions.

Has Applied Materials (AMAT) borrowed under the new credit facility yet?

As of the date referenced in the report, Applied Materials had not made any borrowings under the new credit agreement.

What can Applied Materials use the new credit facility for?

Proceeds from borrowings under the credit agreement are available to be used for general corporate purposes, giving Applied flexibility in how it deploys any future draws.

AI-generated analysis. How Rhea-AI works. Not financial advice.

Understanding 8-K Material Events →

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Accepted by SEC EDGAR 09/26/2025 - 04:15 PM Learn about SEC filing dates

0000006951FALSEAPPLIED MATERIALS INC /DE00000069512025-09-252025-09-25

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________________________________________

FORM 8-K

 ____________________________________________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 25, 2025

____________________________________________________________________

 Applied Materials, Inc.

(Exact name of registrant as specified in its charter)

____________________________________________________________________

Delaware

000-06920

94-1655526

(State or other jurisdiction of incorporation)

(Commission File Number)

(IRS Employer Identification No.)

3050 Bowers Avenue

P.O. Box 58039

Santa Clara, CA 95052-8039

(Address of principal executive offices)

Registrant’s telephone number, including area code: (408) 727-5555

N/A

(Former name or former address, if changed since last report.)

 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐						Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐						Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐						Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐						Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class			Trading Symbol			Name of Each Exchange on Which Registered
Common Stock, par value $.01 per share			AMAT			The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act).   ☐

Item 1.01 Entry into a Material Definitive Agreement.

On September 25, 2025, Applied Materials, Inc. (“Applied”) entered into a credit agreement (the “Credit Agreement”) for a 364-day $2.0 billion revolving credit facility with Bank of America, N.A., as administrative agent (the “Administrative Agent”), and the lenders party thereto (collectively, the “Lenders”).

The Credit Agreement provides for unsecured borrowings in an initial amount not to exceed $2.0 billion outstanding at any one time. The Credit Agreement includes a provision under which Applied may increase the total amount of the revolving credit facility to no more than $3.0 billion, subject to the receipt of commitments from one or more Lenders for any such increase and other customary conditions.

Borrowings under the Credit Agreement will bear interest, at Applied’s option, at a rate per annum equal to either (1) the secured overnight financing rate (“Term SOFR”) for the selected interest period, plus the applicable margin, which will range from 0.50% to 1.00% depending on Applied’s public debt credit ratings, or (2) a rate equal to the highest of (a) a rate that is 0.50% higher than the federal funds effective rate (as the Federal Reserve Bank of New York shall set forth on its public website), (b) the rate publicly announced by the Administrative Agent as its prime rate, (c) Term SOFR for a one-month interest period plus 1.0%, and (d) 1.0%. In addition, the Credit Agreement requires Applied to pay commitment fees on the unused commitments under the Credit Agreement ranging, depending on Applied’s public debt credit ratings, from 0.04% to 0.10% per annum and customary agency fees.

The Credit Agreement contains certain affirmative and negative covenants customary for credit facilities of this type. The Credit Agreement also contains a financial covenant that requires Applied to maintain as of the last day of each fiscal quarter a ratio of (i) consolidated adjusted EBITDA for the four fiscal quarter period ending on such date to (ii) consolidated net interest expense as of such date, of no less than 3.00 to 1.00. The Credit Agreement also contains customary events of defaults. The occurrence of an event of default would permit the Lenders to terminate their commitments to advance loans under the Credit Agreement and to require immediate repayment of any outstanding loans under the Credit Agreement.

Proceeds from borrowings under the Credit Agreement are available to be used for general corporate purposes. The maturity date of the Credit Agreement is September 24, 2026; provided, however, if any loans are outstanding on the maturity date, the Credit Agreement provides that Applied may, at its option, convert all or part of such loans to term loans that shall have a maturity date of September 24, 2027, subject to payment by Applied of a fee equal to 0.75% of the amount of the converted loans and other customary conditions. On the applicable maturity date, the outstanding amount of loans under the Credit Agreement, if any, must be repaid in full.

The foregoing description of the Credit Agreement does not purport to be complete and is qualified in its entirety by the full text of the Credit Agreement, which is filed as Exhibit 10.1 hereto and is incorporated herein by reference.

The Lenders, and certain of their affiliates, have engaged in, and/or in the future may engage in, banking and other transactions with Applied, including previous and existing credit facilities. These parties have received, and/or in the future may receive, customary compensation from Applied for these services.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

As discussed under Item 1.01 above, on September 25, 2025, Applied entered into the Credit Agreement. The information set forth in Item 1.01 is incorporated herein by reference. Applied has not made any borrowings under the Credit Agreement as of this date.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.						Description
10.1						Credit Agreement, dated as of September 25, 2025, among Applied Materials, Inc., Bank of America, N.A., as administrative agent, and the other lenders named therein
104						Cover Page Interactive Data File (formatted as inline XBRL)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

						Applied Materials, Inc.  (Registrant)
Date:			September 26, 2025			By:			/s/ Teri A. Little
									Teri A. Little
									Senior Vice President, Chief Legal Officer and Corporate Secretary