Summary
Mondelēz International, Inc. (MDLZ) has filed an 8-K report detailing the execution of a new $1.5 billion 364-day senior unsecured revolving credit agreement on February 22, 2023. This facility replaces a previous $2.5 billion agreement that was terminated in conjunction with the new agreement. The new credit facility has a termination date of February 21, 2024, but offers the option to extend outstanding loans for an additional year to February 21, 2025, subject to certain conditions. The company also has the flexibility to increase the facility by up to $500 million with lender agreement. This new credit agreement is primarily intended for general corporate purposes, including working capital needs and supporting the company's commercial paper program. Investors should note the covenant requiring a minimum shareholders' equity of $25.0 billion, with specific exclusions for certain accounting adjustments. The interest rate on borrowings will be variable, based on SOFR or a base rate, plus an applicable margin tied to the company's long-term senior unsecured debt rating.
Key Highlights
- 1Entry into a new $1.5 billion 364-day senior unsecured revolving credit agreement, effective February 22, 2023.
- 2Termination of the prior $2.5 billion 364-day revolving credit agreement dated February 23, 2022.
- 3The new facility has a termination date of February 21, 2024, with an option to extend loans to February 21, 2025.
- 4Potential for an increase of up to $500 million in the credit facility size.
- 5Funds are designated for general corporate purposes, including working capital and supporting the commercial paper program.
- 6Key financial covenant requires a minimum shareholders' equity of $25.0 billion, with specific exclusions.
- 7Interest rates will be variable, tied to SOFR or base rate plus an applicable margin based on debt rating.