8-KMaterial AgreementsFinancial EventsExhibits & Filings

Mondelez International, Inc. 8-K Report, Material Agreement (Apr 6, 2023)

Filed April 6, 2023For Securities:MDLZ

Summary

Mondelez International, Inc. (MDLZ) filed an 8-K on April 6, 2023, to report the execution of a new $2.0 billion senior unsecured revolving credit agreement. This facility provides liquidity for general corporate purposes, including working capital and support for its commercial paper program. The agreement has a termination date of December 29, 2023, and its terms are tied to MDLZ's long-term senior unsecured debt rating, influencing the applicable interest margin. The credit facility requires Mondelez to maintain a minimum shareholders' equity of $25.0 billion, with specific exclusions for certain accounting adjustments. This new credit line offers financial flexibility and demonstrates the company's proactive approach to managing its liquidity needs. Investors should note that several lenders involved in this agreement also maintain existing financial service relationships with Mondelez, which is standard practice.

Key Highlights

  • 1Entered into a $2.0 billion senior unsecured revolving credit agreement on April 6, 2023.
  • 2The facility is intended for general corporate purposes, including working capital and commercial paper support.
  • 3The agreement terminates on December 29, 2023.
  • 4Interest rates are variable, based on SOFR or base rate plus an applicable margin tied to debt ratings.
  • 5Requires a minimum shareholders' equity of $25.0 billion, with specific accounting exclusions.
  • 6Includes customary representations, covenants, and events of default.

Frequently Asked Questions

The primary purpose of the $2.0 billion revolving credit agreement is to provide Mondelez International with financial flexibility for general corporate purposes, including managing working capital needs and supporting its commercial paper program.

The revolving credit agreement has a termination date of December 29, 2023.

A key financial covenant is the requirement for Mondelez to maintain a minimum shareholders' equity of not less than $25.0 billion. This calculation specifically excludes certain items like accumulated other comprehensive income/loss and mark-to-market adjustments for pension plans.

The interest rate is variable and will be based on either the SOFR or a base rate, at Mondelez's election, plus an applicable margin. This margin is determined by the rating of Mondelez's long-term senior unsecured debt.