Lockheed Martin Enters $2.25B 364-Day Credit Facility; Extends $3B Revolver

What Happened

• Lockheed Martin Corporation announced on August 24, 2026 that it entered into a new $2.25 billion 364-day unsecured revolving credit agreement, and simultaneously terminated its prior 364-day facility (dated Dec 5, 2025) with no early termination penalty. The new 364-day facility matures August 23, 2027 and is available for general corporate purposes, including supporting commercial paper. No drawdowns were made at closing.
• On the same date the company entered an extension agreement that pushes the maturity of its existing $3.0 billion five-year revolving credit agreement from August 24, 2030 to August 24, 2031; all other terms of that facility remain unchanged.

Key Details

• New facility amount: $2.25 billion (364-day unsecured revolving credit), closing date August 24, 2026; maturity August 23, 2027.
• Optional conversion: company may convert outstanding borrowings to a one-year non-revolving term loan to August 23, 2028 by paying a conversion fee equal to 0.50% of the principal converted.
• Pricing: interest at Base Rate, Term SOFR, Daily Simple SOFR, or competitive bid; Term SOFR margin ranges from 0.585% to 1.085% depending on Lockheed Martin’s long-term unsecured credit ratings; quarterly facility fee of 0.04% on commitments.
• Credit protections and defaults: customary reps, warranties and covenants (including restrictions on liens and certain mergers), no financial maintenance covenant; Events of Default include payment defaults, breach of covenants, bankruptcy, Material Debt acceleration, unsatisfied judgments over $300M, and certain change-of-control/board composition events.

Why It Matters

• This filing shows Lockheed Martin maintaining liquidity flexibility and preserving its short- and long-term backstop for commercial paper and other funding needs by refreshing a near-term $2.25B facility while extending the five-year $3.0B revolver for one year.
• For investors, the move is a routine but important corporate finance action that supports the company’s cash management and credit profile without adding secured debt or new restrictive financial covenants.