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Post Holdings borrows $500 million under $750 million amended loan
Chicago, March 24 – Post Holdings Inc. closed on a $750 million amended and restated credit agreement on March 18, according to an 8-K filing with the Securities and Exchange Commission.
Barclays Bank plc is the administrative agent.
Barclays Bank, BofA Securities, Inc., Citigroup Global Markets Inc., Credit Suisse Loan Funding LLC, JPMorgan Chase Bank, NA and Wells Fargo Securities, LLC are joint lead arrangers and joint bookrunners, and BofA Securities, Citigroup Global Markets and Wells Fargo Securities are syndication agents.
Credit Suisse Loan Funding and JPMorgan Chase Bank are documentation agents.
On Monday, Post borrowed $500 million under the $750 million revolving credit facility.
Letters of credit are available under the agreement for up to $75 million.
Borrowings will initially bear interest at the Eurodollar rate plus 150 basis points and will later be determined by the secured net leverage ratio.
For greater than 3x net leverage, the interest rate will be the Eurodollar rate plus 200 bps. Between 1.5x and 3x net leverage, the rate will be the Eurodollar rate plus 175 bps. And, if net leverage is less than 1.5x, the rate will be the Eurodollar rate plus 150 bps.
Commitment fees on the daily unused amount will start at 25 bps and will increase to 37.5 bps if the company’s secured net leverage is over 3x.
The company borrowed the money as a precautionary measure in order to increase its cash position and its financial flexibility in light of the coronavirus outbreak.
Proceeds will be used for working capital, general corporate or other purposes.
Prior to this borrowing, the company had $21.9 million of letters of credit outstanding and no other amounts under its revolver.
Post is a St. Louis-based cereal, food and nutrition company.
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