Summary
This 8-K filing by Kraft Foods Inc. (predecessor to Mondelez International) on September 11, 2006, reports on the completion of a significant acquisition. Kraft's wholly owned subsidiaries, Kraft Foods International, Inc. and Nabisco Euro Holdings Ltd., acquired the Spanish and Portuguese operations of United Biscuits Group (UB) for approximately EUR 431.7 million. This transaction expands Kraft's international footprint and diversifies its product portfolio within these key European markets. The acquisition was financed through a EUR 440,000,000 364-day term loan facility secured by the acquired entity, Sheffield Investments, S.L. Notably, Kraft Foods Inc. has provided an unconditional guarantee for Sheffield's obligations under this loan, a move that signifies management's confidence in the transaction and its integration into Kraft's broader operations. Investors should note the short-term nature of the financing and the parent company's financial commitment.
Key Highlights
- 1Kraft Foods Inc. completed the acquisition of the Spanish and Portuguese operations of United Biscuits Group (UB) on September 6, 2006.
- 2The acquired business, now held by Sheffield Investments, S.L., had outstanding debt of approximately EUR 431.7 million at the time of acquisition.
- 3The acquisition was financed via a EUR 440,000,000 364-day term loan facility entered into on August 25, 2006.
- 4Kraft Foods Inc. has provided an unconditional guarantee for all obligations of Sheffield Investments, S.L. under the term loan facility.
- 5The Guaranty requires Kraft to maintain a minimum net worth of $20.0 billion, demonstrating financial backing for the acquired operations.
- 6The transaction involved Kraft's wholly owned subsidiaries: Kraft Foods International, Inc. and Nabisco Euro Holdings Ltd.
- 7The Credit Agreement matures on August 24, 2007, indicating a short-term financing strategy for this acquisition.