Applied Materials, Inc. (AMAT.US) disclosed a new $2 billion credit line, causing the stock price to rise.

Applied Materials, Inc. (AMAT.US) saw a 1.8% increase in stock price during pre-market trading on Monday. The semiconductor equipment company announced a new $2 billion credit facility in partnership with Bank of America Corp on the same day. According to the company's filing with the Securities and Exchange Commission (SEC), the 364-day credit facility has two interest rate calculation methods: 1. Choose the Term SOFR rate for the corresponding interest period, plus an applicable spread ranging from 0.50% to 1.00%, depending on Applied Materials, Inc.'s public debt credit rating. 2. Take the highest of the following four rates: a rate higher than the Federal Funds Effective Rate (published on the New York Fed's website) by 0.50%; the best rate publicly disclosed by the loan management bank (Bank of America Corp); Term SOFR rate for a one-month interest period plus 1.0%; 1.0%. The funds raised from this new credit facility will be used for general corporate purposes.