Company: BBU
Filing Date: 2025-04-10
Form Type: 20-F
Source: 0001628280-25-017216
Chunk: 198

Company: Brookfield Business Partners L.P.
Filing Date: 2025-04-10
Form: 20-F
Item: Item 7
Chunk 198
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 (2023: $nil).

Credit Facilities

Our partnership has bilateral credit facilities in the amount of $2.35 billion backed by global banks. The credit facilities are available in Euros, British pounds, Australian, U. S. and Canadian dollars. Advances under the credit facilities bear interest at the specified SOFR, SONIA, EURIBOR, CORRA or BBSY rate plus 2.50%, or the specified base rate or prime rate plus 1.50%. The bilateral credit facilities require our partnership to maintain a minimum tangible net worth and deconsolidated debt to capitalization ratio at the corporate level. The maturity date of the facilities is June 29, 2029.

Our partnership is party to a fifth amended and restated credit agreement with Brookfield to borrow up to $1 billion to support the funding of new acquisitions and investments (the “revolving acquisition credit facility”). The maturity date of the revolving acquisition credit facility is April 27, 2029, which date will automatically extend for a one-year period on April 27 of each year unless Brookfield provides written notice of its intention not to further extend the then prevailing maturity date. The total available amount on the credit facility will decrease to $500 million on April 27, 2025. As at December 31, 2024, the credit facility remained undrawn.

The revolving acquisition credit facility is available in U. S. or Canadian dollars, and advances are made by way of SOFR, CORRA, base rate or prime rate loans. The revolving acquisition credit facility bears interest at the specified SOFR, CORRA, base rate or prime rate plus an applicable margin that is subject to adjustment from time to time. The revolving acquisition credit facility also requires our partnership to maintain a minimum deconsolidated net worth and contains restrictions on the ability of the borrowers and the guarantors to, among other things, incur liens, engage in certain mergers and consolidations or enter into speculative hedging arrangements.

A wholly-owned subsidiary of BBUC has agreed to fully and unconditionally guarantee the obligations of the partnership under the partnership’s $2.35 billion bilateral credit facilities with global banks and the revolving acquisition credit facility with Brookfield.

Brookfield Commitment Agreement

On February 4, 2022, Brookfield entered into the Brookfield commitment agreement with our partnership, which was amended on May 5, 2022 and November 7, 2023, pursuant to which Brookfield agreed to subscribe for up to