Kraft enters $4 billion revolving credit agreement with 364-day term

By Jennifer Chiou

New York, March 14 - Kraft Foods Inc. entered into on March 8 a 364-day revolving credit agreement as guarantor with wholly owned subsidiary Kraft Foods Global, Inc., according to an 8-K filing with the Securities and Exchange Commission.

The Northfield, Ill.-based food company said that the senior unsecured facility has a capacity of $4 billion.

Barclays Capital Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and RBS Securities Inc. are the joint bookrunners with Barclays Bank plc and JPMorgan Chase Bank, NA as co-administrative agents.

The termination date of the facility is March 7, 2013.

Upon the completion of the previously announced proposed spin-off of Kraft's North American grocery business to shareholders, the parent's guarantee will automatically terminate.

Kraft Foods Global expects to use the proceeds for general corporate purposes, the filing noted.

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