Summary
Mondelez International, Inc. (MDLZ) has announced the entry into a new Term Credit Agreement, which allows the company to borrow up to $2.0 billion. This facility has an initial 18-month term and can be extended for an additional six months at the company's request, subject to lender approval. The agreement is structured to allow for multiple funding dates within the first eight months, with each borrowing tranche having its own 18-month maturity that can be extended. The primary purpose of this new credit facility is for general corporate purposes, indicating flexibility in how Mondelez plans to utilize these funds. The agreement includes standard covenants and events of default, along with a specific requirement to maintain a minimum shareholders' equity of $25.0 billion, excluding certain accounting adjustments. The interest rate will be variable, based on SOFR or a base rate plus an applicable margin tied to the company's credit rating.
Key Highlights
- 1Entry into a $2.0 billion Term Credit Agreement with an initial 18-month term.
- 2The facility allows for potential extension of the maturity date by an additional six months, subject to lender consent.
- 3Funds are available for general corporate purposes, offering financial flexibility.
- 4Interest rates will be variable, based on SOFR or a base rate plus a margin determined by Mondelez's credit rating.
- 5The agreement includes a covenant requiring a minimum shareholders' equity of $25.0 billion.
- 6Borrowings cannot be re-borrowed after repayment.
- 7The company has the right to prepay outstanding loans and terminate unused commitments.