Newell Rubbermaid Inc. ( NWL - Analyst Report ) , the producer of Sharpie pens and Rubbermaid containers, in an effort to enhance the company’s financial flexibility, has entered into a new five-year unsecured revolving credit agreement with a consortium of world’s leading investment bankers.

The new $800 million revolving credit line facility’s maturity date of December 2, 2016 has been financed by a consortium of investment bankers, such as JP Morgan Chase Bank, Barclays capital, Citigroup Global Market and RBC Capital Markets. Moreover, Newell may increase the size of the new credit facility by up to $1250 million and maturity date for additional 1 year, subject to the approval from the lending institutions.

Under the new credit line facility, the company will be able to borrow funds at various levels of interest rates with an additional facility of issuing letters of credit of up to $100 million

Newell has also notified that it has terminated the $665 million seven-year credit facility entered on November 14, 2005, effective from December 2, 2011 as there were no outstanding borrowings under the credit facility.

Under a revolving credit facility, a company can borrow again once it repays all dues under the old credit facility. The company may utilize this fund for general corporate purposes, including repayment of outstanding commercial papers, working capital and capital investment or acquisitions.

Newell Rubbermaid is one of the leading manufacturers of home and office products in the U.S. The company also possesses a strong portfolio of widely popular brands, such as Sharpie, Paper Mate, Dymo, Expo, Waterman, Parker, Irwin, Lenox, Rubbermaid, Levolor, Graco, Calphalon and Goody. Leveraging its strong brand equity, Newell Rubbermaid expects modest earnings going ahead, provided the market scenario improves.

The company faces intense competition from numerous manufacturers and distributors of consumer and commercial products, such asFortune Brands Inc. ( ) , Cooper Industries plc ( ) , and Avery Dennison Corporation ( AVY - Analyst Report ) .

Newell Rubbermaid currently has a Zacks #3 Rank, implying a short-term ‘Hold’ rating on the stock. Besides, the company retains a long-term ‘Neutral’ recommendation.