Summary
Mondelēz International, Inc. (MDLZ) filed an 8-K on March 8, 2020, reporting the entry into a new $2.5 billion 364-day senior unsecured revolving credit agreement. This facility, effective March 6, 2020, matures on March 5, 2021, and is intended for general corporate purposes, including working capital needs and to support its commercial paper program. This new credit line provides Mondelez with significant financial flexibility and liquidity. The agreement includes customary covenants, such as a minimum shareholders' equity requirement of $24.6 billion (with specific exclusions for certain accounting adjustments), and variable interest rates based on LIBOR or base rate plus an applicable margin tied to its debt rating. The facility also has provisions for automatic reduction of commitments and repayment of borrowings upon the incurrence of certain new indebtedness exceeding $100 million, excluding commercial paper and intercompany debt.
Key Highlights
- 1Secured a new $2.5 billion 364-day senior unsecured revolving credit facility.
- 2The facility is for general corporate purposes, working capital, and support of the commercial paper program.
- 3Matures on March 5, 2021.
- 4Requires maintaining a minimum shareholders' equity of $24.6 billion.
- 5Interest rates are variable, based on LIBOR or base rate plus an applicable margin.
- 6Includes covenants that can reduce credit availability upon incurring significant new debt.
- 7JPMorgan Chase Bank, N.A. is the administrative agent.