Mondelez enters $1.5 billion 364-day senior revolving facility

By Marisa Wong

Morgantown, W.Va., March 1 – Mondelez International, Inc. entered into a revolving credit agreement on Wednesday for a 364-day senior unsecured revolving credit facility totaling $1.5 billion, according to an 8-K filing with the Securities and Exchange Commission.

J.P. Morgan Chase Bank, NA, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, HSBC Securities (USA) LLC and Merrill Lynch, Pierce, Fenner & Smith Inc. are joint lead arrangers and joint bookrunners with and JPMorgan Chase Bank as administrative agent. Bank of America, NA, Citibank, NA, Credit Suisse Securities and HSBC Securities are co-syndication agents.

The credit agreement will terminate on Feb. 28, 2018, but the company may extend the maturity of any loans outstanding on the termination date to Feb. 28, 2019.

Borrowings will bear interest at Libor plus an applicable margin based on long-term senior unsecured debt ratings. The applicable margin ranges from 80.5 basis points to 125 bps.

There is also a facility fee that ranges from 7 bps to 12.5 bps, depending on ratings.

The credit agreement requires the company to maintain a minimum shareholders’ equity of at least $24.6 billion.

The company expects to use the revolver for general corporate purposes.

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

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