Mondelez enters $4.5 billion five-year replacement revolving facility

By Marisa Wong

Madison, Wis., Oct. 17 - Mondelez International, Inc. entered into a revolving credit agreement on Oct. 11 for a $4.5 billion five-year senior unsecured revolving credit facility, according to an 8-K filed Thursday with the Securities and Exchange Commission.

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and HSBC Securities (USA) LLC were the joint lead arrangers and joint bookrunners, and JPMorgan Chase Bank, NA and Deutsche Bank AG New York Branch were co-administrative agents.

The credit agreement replaces Mondelez's $4.5 billion four-year revolving credit agreement dated April 1, 2011. The prior agreement was terminated on Oct. 11.

The new revolving credit facility may be increased by up to $500 million.

The facility will terminate on Oct. 11, 2018, but prior to each of the first four anniversaries of the effective date of the credit agreement commitments may be extended for an additional one-year period.

Interest is equal to Libor plus an applicable margin based on the company's long-term senior debt rating. Pricing details were not included in the 8-K.

The credit agreement requires the company to maintain a minimum shareholders' equity of not less than $24.6 billion, the filing noted.

The company said it expects to use borrowings for general corporate purposes, including for working capital purposes and to support commercial paper issuances.

Mondelez, formerly Kraft Foods Inc., is a snack company based in Deerfield, Ill.

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