Mondelez gets another $2 billion of term loans with drawdown flexibility

By William Gullotti

Buffalo, N.Y., July 12 – Mondelez International, Inc. signed for up to $2 billion of term loans on Monday, according to an 8-K filing with the Securities and Exchange Commission.

As with the $2 billion three-year agreement signed March 31, Mizuho Bank, Ltd. is the administrative agent.

Mondelez may borrow on the term loan in up to four draws for up to eight months after the July 11 effective date. Borrowings will be due 18 months after the applicable funding date(s). Maturities on outstanding loans may be extended up to six months, subject to lender approval.

The amounts are not revolving; i.e., if the amounts are borrowed and repaid, they may not be reborrowed.

Borrowings will bear interest at SOFR plus a margin ranging from 52.5 basis points to 82.5 bps. There is also a ticking fee of between 3.5 bps and 9 bps. The margin and fee are based on the company’s ratings as specifically determined by Moody’s Investors Service and S&P Global Ratings.

The credit agreement requires the company to maintain a minimum shareholders’ equity of not less than $25 billion.

Mizuho is also serving as a joint lead arranger and the sole bookrunner.

TD Securities (USA) LLC, Truist Securities, Inc. and U.S. Bank NA are also joint lead arrangers.

Proceeds will be used for general corporate purposes.

Mondelez, formerly the snack food business of Kraft Foods Inc., is based in Chicago, Ill.

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