Summary
Mondelez International, Inc. (MDLZ) has entered into a new 364-day revolving credit agreement totaling $2.5 billion, filed on February 24, 2021. This facility, structured as a senior unsecured revolving credit line, provides significant financial flexibility for the company's general corporate purposes, including working capital needs and supporting its commercial paper program. The agreement is with a syndicate of lenders, coordinated by JPMorgan Chase Bank, N.A., as the administrative agent. Key terms include a variable interest rate based on LIBOR or a base rate plus an applicable margin determined by Mondelez's long-term senior unsecured debt rating. The facility has a termination date of February 23, 2022, with an option to extend outstanding loans to February 23, 2023, subject to certain conditions. A notable covenant requires Mondelez to maintain a minimum shareholders' equity of $24.6 billion, with specific exclusions for certain accounting adjustments. This new credit line enhances Mondelez's liquidity position and its ability to manage its financial obligations effectively.
Key Highlights
- 1Mondelez International entered into a $2.5 billion, 364-day senior unsecured revolving credit agreement.
- 2The facility is intended for general corporate purposes, including working capital and supporting the commercial paper program.
- 3Borrowings will bear interest at a variable rate (LIBOR or base rate) plus an applicable margin tied to the company's credit rating.
- 4The agreement terminates on February 23, 2022, with a potential extension for outstanding loans to February 23, 2023.
- 5A minimum shareholders' equity covenant of $24.6 billion is in place.
- 6JPMorgan Chase Bank, N.A. serves as the administrative agent for the credit facility.