Kraft Heinz draws $4 billion under revolver, extends portion to 2024

By Rebecca Melvin

New York, March 24 – Kraft Heinz Co. and its operating subsidiary Kraft Heinz Foods Co. have drawn down the full $4 billion amount under their revolving credit agreement and extended the maturity date by one year to July 6, 2024 for $3.9 billion of the loans, according to an 8-K filing with the Securities and Exchange Commission.

The revolving loans and commitments of each lender that did not agree to the extension will continue to terminate on the existing July 6, 2023 maturity date.

The company entered into the extension letter agreement on March 23 with respect to the credit agreement originating July 6, 2015 for a $4 billion senior unsecured revolving credit facility and a $600 million senior unsecured term loan. JPMorgan Chase Bank NA is administrative agent and J.P. Morgan Europe Ltd. is London agent for the facility.

No amounts had been drawn on the company’s senior credit facility on Dec. 28. But lenders were provided notice on March 12 that the company would borrow the full amount available.

The action was taken as a precautionary measure to provide financial flexibility in light of the current uncertainty in the global economy resulting from the novel coronavirus pandemic.

The borrowing rates at the time the facility was originated were are based on the company’s long-term senior unsecured, non-credit enhanced debt rating and ranged from Libor plus 87.5 basis points to Libor plus 175 bps for the revolver and Libor plus 112.5 to Libor plus 175 bps for the term loan.

Kraft Heinz is a food company based in Pittsburgh.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.