Kellogg obtains replacement $1 billion 364-day revolving facility

By Wendy Van Sickle

Columbus, Ohio, Jan. 30 – Kellogg Co. entered into an unsecured 364-day credit agreement on Tuesday for a $1 billion revolver, according to an 8-K filed with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA, Barclays Bank plc, BofA Securities, Inc., Citibank, NA, Cooperatieve Rabobank UA, New York Branch, Morgan Stanley MUFG Loan Partners, LLC and Wells Fargo Securities, LLC are joint lead arrangers and joint bookrunners with JPMorgan Chase Bank as administrative agent and Barclays Bank as syndication agent.

The new revolver replaces the company’s 364-day credit facility dated Jan. 29, 2019, which expired on the effective date of the new facility.

The new facility bears interest at Libor plus 94 basis points to 147.5 bps, depending on the company’s ratings.

The facility fee ranges from 6 bps to 15 bps, also based on ratings.

In addition, the credit facility contains a financial covenant that requires the ratio of consolidated EBITDA to consolidated interest expense to be no less than 4 to 1 for any four consecutive fiscal quarters.

No borrowings were outstanding under the new credit facility as of the closing date.

The Battle Creek, Mich.-based company manufactures cereal and convenience foods.

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