Summary
Mondelez International, Inc. (MDLZ) announced on March 26, 2020, that it entered into a 364-day senior unsecured revolving credit agreement for an aggregate principal amount of $1.75 billion. This new credit facility, with Citibank, N.A. as administrative agent, is intended for general corporate purposes, including working capital and supporting its commercial paper program. The agreement terminates on March 23, 2021, and allows for potential increases in the facility size under certain conditions. This move provides Mondelez with enhanced financial flexibility, particularly relevant given the uncertain economic environment at the time of the filing in March 2020. The facility's structure, including the ability to issue additional debt and the maintenance of a minimum shareholder's equity covenant, indicates the company's proactive approach to managing its liquidity and financial obligations.
Key Highlights
- 1Entered into a $1.75 billion, 364-day senior unsecured revolving credit agreement on March 24, 2020.
- 2Citibank, N.A. is the administrative agent for the new credit facility.
- 3The facility is intended for general corporate purposes, working capital, and to support the commercial paper program.
- 4The agreement terminates on March 23, 2021.
- 5Mondelez has the option to increase the credit facility size by up to $1 billion, subject to lender agreement.
- 6The credit agreement includes a covenant requiring a minimum shareholders' equity of not less than $24.6 billion (with specific exclusions).
- 7Interest rates are variable, based on LIBOR or base rate plus an applicable margin determined by debt ratings.