Kellogg gets commitment from Barclays for $1 billion bridge loan

By Angela McDaniels

Tacoma, Wash., Feb. 17 - Kellogg Co. plans to put in place a $1 billion 364-day senior bridge term loan facility to help fund its acquisition of Procter & Gamble Co.'s Pringles business, according to an 8-K filing with the Securities and Exchange Commission.

Kellogg entered into a commitment letter for the bridge loan with Barclays Bank plc on Wednesday.

The company said the financial covenants will be substantially based on the corresponding provisions of its existing credit agreement.

Kellogg agreed on Wednesday to acquire the Pringles business for $2.7 billion in cash. The acquisition is targeted to close by June 30.

The company will fund the acquisition with cash on hand and about $2 billion of debt, according to a transcript of the company's Wednesday webcast included in a prior 8-K filing with the SEC.

Kellogg is a Battle Creek, Mich.-based food and cereal company.

Procter & Gamble is a consumer products company based in Cincinnati.

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