Summary
On April 1, 2011, Kraft Foods Inc. (which would later become Mondelez International) entered into a new four-year senior unsecured revolving credit agreement totaling $4.5 billion. This new facility replaces a previous three-year agreement and provides financial flexibility for general corporate purposes, including working capital and support for commercial paper issuances. The agreement includes an option to increase the facility by up to $500 million and has a maturity date of April 1, 2015, with potential one-year extensions. Key financial covenants include maintaining a minimum shareholders' equity of $28.6 billion. The credit agreement contains standard representations, covenants, and events of default, typical for such facilities. This refinancing demonstrates the company's ongoing efforts to manage its liquidity and capital structure effectively, providing a robust funding source for its operations.
Key Highlights
- 1Kraft Foods Inc. entered into a new $4.5 billion revolving credit agreement on April 1, 2011.
- 2The new agreement has a four-year term, maturing on April 1, 2015.
- 3This facility replaces a prior $4.5 billion, three-year revolving credit agreement.
- 4The company has the option to increase the credit facility by an additional $500 million.
- 5Borrowings will bear interest at variable rates based on LIBOR or base rate plus an applicable margin.
- 6A key financial covenant requires maintaining a minimum shareholders' equity of $28.6 billion.
- 7The proceeds are intended for general corporate purposes, including working capital and commercial paper support.