Lockheed Martin (NYSE: LMT) sets $2.25B credit, extends $3B line
Rhea-AI Filing Summary
LOCKHEED MARTIN CORP (LMT) entered into a new $2.25 billion 364-day unsecured revolving credit facility on August 24, 2026, replacing its prior 364-day facility with no early termination penalties. The facility may be used for lawful corporate purposes, including supporting commercial paper borrowings, and had no borrowings outstanding at closing.
The new 364-day facility matures August 23, 2027, with an option to convert outstanding amounts into a one-year non-revolving term loan, payable August 23, 2028, for a 0.50% conversion fee. Borrowings bear interest at a Base Rate or SOFR-based options plus a Term SOFR Margin of 0.585%–1.085%, depending on credit ratings, and a 0.04% facility fee on commitments.
The agreement includes customary covenants limiting asset encumbrances and mergers, and Events of Default such as bankruptcy, certain covenant breaches, specified change of control, and unsatisfied judgments over $300 million. Separately, Lockheed Martin extended its existing $3.0 billion 5-year revolving credit agreement by one year, moving its expiration from August 24, 2030 to August 24, 2031, with all other terms unchanged.
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8-K Event Classification
2 items: 1.01, 9.01
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 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
364-Day Revolving Credit Facility Size: $2.25 billion
Maturity Date – 364-Day Facility: August 23, 2027
Optional Term Loan Maturity: August 23, 2028
+5 more
8 metrics
364-Day Revolving Credit Facility Size
$2.25 billion
Unsecured revolving credit facility under new 364-Day Revolving Credit Agreement
Maturity Date – 364-Day Facility
August 23, 2027
Stated maturity of the new 364-day revolving credit facility
Optional Term Loan Maturity
August 23, 2028
Maturity if outstanding borrowings are converted to non-revolving term loans
Conversion Fee
0.50%
Fee on principal amount converted to non-revolving term loans
Term SOFR Margin Range
0.585% to 1.085% per annum
Interest margin based on senior unsecured long-term debt credit ratings
Facility Fee Rate
0.04%
Quarterly fee on aggregate commitments under the 364-Day Revolving Credit Agreement
Judgment Event of Default Threshold
$300 million
Unsatisfied judgment amount triggering an Event of Default
5-Year Revolving Credit Facility Size
$3.0 billion
Existing 5-Year Revolving Credit Agreement extended by one year
Key Terms
364-Day Revolving Credit Agreement, Term SOFR, Daily Simple SOFR, Base Rate, +2 more
6 terms
364-Day Revolving Credit Agreement financial
"entered into a new 364-Day Revolving Credit Agreement (the “364-Day Revolving Credit Agreement”)"
Term SOFR financial
"“Term SOFR,” which is a periodic fixed rate based on the Secured Overnight"
Term SOFR is a benchmark interest rate that reflects the cost of borrowing money over a specific period, based on actual transactions in the financial markets. It is used by lenders and borrowers to set the interest rates on loans and financial contracts, helping to ensure rates are fair and transparent. For investors, understanding term SOFR helps gauge borrowing costs and the overall direction of interest rates in the economy.
Daily Simple SOFR financial
"“Daily Simple SOFR,” which is a daily fluctuating rate based on SOFR"
Daily simple SOFR is a widely published short-term interest benchmark based on actual overnight secured borrowing costs in the U.S. Treasury repo market; the “daily simple” version means the single-day rate is applied directly to calculate interest for that day rather than being compounded over multiple days. Investors care because it sets the interest paid or earned on floating-rate loans, bonds and cash products, so small daily changes change cash flows, borrowing costs and valuations—think of it as the daily retail price that determines what you pay or receive for short-term money.
Base Rate financial
"The “Base Rate” of interest is the highest of (i) the Federal Funds Rate"
The base rate is the primary interest rate set by a central authority or used as a benchmark for pricing loans, savings and other financial products. Think of it as the anchor in a floating system: when the base rate moves, borrowing costs, corporate financing and consumer spending tend to shift too, which can change company profits and investor returns across the market.
Event of Default financial
"amounts outstanding may be accelerated upon the occurrence of an “Event of Default”"
An event of default is a specific breach of a loan or bond agreement—such as missed payments or breaking agreed rules—that gives lenders the legal right to act, for example by demanding immediate repayment, seizing collateral, or accelerating other obligations. For investors, it’s a red flag because it can sharply reduce a company’s ability to operate or raise money, like a car lender repossessing a vehicle after missed payments, and often leads to falling share or bond prices.
Material Subsidiary financial
"the bankruptcy or insolvency of the Company or a Material Subsidiary"
FAQ
What new credit facility did LOCKHEED MARTIN CORP (LMT) put in place on August 24, 2026?
Lockheed Martin entered into a new $2.25 billion 364-day unsecured revolving credit facility available for any lawful corporate purposes, including supporting commercial paper borrowings. The facility matures August 23, 2027, and no borrowings were outstanding at closing.
How can the new 364-day credit facility for LMT be extended beyond August 23, 2027?
Lockheed Martin may elect to convert all or part of outstanding borrowings into non-revolving term loans for one additional year, payable on August 23, 2028, by paying a 0.50% fee on the principal amount converted.
What are the key pricing terms of Lockheed Martin’s new 364-day revolving credit agreement?
Borrowings bear interest at a Base Rate or SOFR-based options plus a Term SOFR Margin ranging from 0.585% to 1.085% per annum, depending on Lockheed Martin’s senior unsecured long-term debt ratings. A 0.04% facility fee accrues on aggregate commitments, payable quarterly.
Did LOCKHEED MARTIN CORP incur penalties when terminating its prior 364-day facility?
No. Lockheed Martin terminated its prior 364-day revolving credit agreement dated December 5, 2025, which was scheduled to end December 4, 2026, and no early termination penalties were incurred in connection with entering into the new facility.
What change was made to Lockheed Martin’s existing $3.0 billion 5-year revolving credit agreement?
Lockheed Martin entered into an Extension Agreement that extends the expiration date of its existing $3.0 billion 5-year revolving credit agreement by one year, moving it from August 24, 2030 to August 24, 2031. All other terms remain in full force and effect.
What Events of Default thresholds are specified in LMT’s new 364-day revolving credit agreement?
Events of Default include unsatisfied judgments in excess of $300 million against Lockheed Martin or a Restricted Subsidiary, failures to pay principal, facility fees or interest, certain covenant breaches, bankruptcy or insolvency events, specified Material Debt issues, and certain change of control events.
AI-generated analysis. How Rhea-AI works. Not financial advice.
