Credit Crunch Hits Valley: Merrill Demands Payment on $1.5 Billion Agilent Loan

Still don’t believe the credit crunch will hit the tech world? Merrill Lynch (MER) is requiring Santa Clara-based Agilent Technologies, a measurement and instruments maker spun out of HP many years ago, to repay a $1.5 billion loan three years ahead of schedule.

Agilent took the original loan from an undisclosed third party, backed by Merrill. Now the original lender can’t cover, so the not-exactly-swimming-in-cash-itself Merrill is calling it in. Agilent has to repay the loan by July, and a spokesman says that the company has $3 billion of cash on hand.

What happens to debtors who aren’t flush with money?

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.

Tagged In

banks sai-us