Bank of America just raised its EUR/USD forecast
Baxter International Inc. (NYSE:BAX), a global leader in medical products with a market capitalization of $16.1 billion, announced on Thursday the signing of an amended and restated five-year credit agreement, increasing its borrowing capacity to $2.2 billion. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics. This move amends the existing $2 billion revolving credit facility established on September 30, 2021, and replaces a €200 million credit facility that was terminated concurrently with the new agreement.
The amended agreement, dated June 11, 2025, allows Baxter, along with its Euro Borrowers, Baxter Healthcare SA, and Baxter World Trade SRL, to secure funds in various currencies, including U.S. Dollars and Euros, on an unsecured basis at variable interest rates. The agreement also extends the maturity date and introduces the option for Baxter to increase the total commitment up to $3.3 billion.
In addition to the revolving credit facility, Baxter entered into a separate amended and restated credit agreement, which revises the terms of the existing term loan agreement. This term loan agreement accounts for $645 million outstanding as of the date of the report and is scheduled to mature on December 14, 2027.
Both credit agreements contain customary financial and other covenants, including a net leverage ratio covenant and provisions for the issuance of letters of credit. The company maintains a healthy current ratio of 2.02 and has demonstrated financial stability through 55 consecutive years of dividend payments, as reported by InvestingPro. The agreements also outline events of default that apply to Baxter and the Euro Borrowers, as well as Baxter’s Material Subsidiaries under certain conditions.
The details of these credit agreements were filed with the Securities and Exchange Commission and can be found in Exhibits 10.1 and 10.2 of the Form 8-K report. Baxter’s proactive financial restructuring aims to improve its liquidity and financial flexibility, positioning the company for future growth opportunities.
This financial maneuver is part of Baxter’s strategic planning and underscores the company’s commitment to maintaining a strong balance sheet. While currently not profitable, analysts expect positive earnings this year, with five analysts recently revising their earnings estimates upward. For deeper insights into Baxter’s financial health and detailed analysis, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks. The information for this article is based on a press release statement and InvestingPro data.
In other recent news, Baxter International has reported its first-quarter 2025 earnings, surpassing Wall Street expectations with an adjusted earnings per share (EPS) of $0.55, compared to the forecasted $0.48. The company also posted revenue of $2.63 billion, exceeding the anticipated $2.59 billion, marking a 5% year-over-year increase in sales from continuing operations. Baxter’s strategic focus on innovation and operational efficiency has led to a significant improvement in its adjusted operating margin, which rose to 14.9%. The company has projected full-year 2025 sales growth of 7-8% and an EPS guidance between $2.47 and $2.55. Meanwhile, UBS has maintained its Neutral rating on Baxter, citing strategic uncertainties related to the CEO transition and the company’s post-Vantive sales strategy, which could impact Baxter’s market growth rate. Despite these concerns, Baxter has demonstrated momentum across its portfolio with products like Novum IQ and Progressa+. The firm is also preparing for potential inorganic investments and a share buyback program, while targeting a net debt to EBITDA ratio of 3x by year-end.
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