Mondelez enters into $1.5 billion 364-day revolving credit facility

By Sarah Lizee

Olympia, Wash., March 1 – Mondelez International, Inc. entered into a revolving credit agreement on Wednesday providing for a $1.5 billion 364-day senior unsecured revolving credit facility, 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 JPMorgan Chase Bank as administrative agent.

The revolving credit agreement will terminate on Feb. 27, 2019, but the company may extend the maturity of any loans outstanding on the termination date to Feb. 26, 2020.

Borrowings will bear interest at Libor plus a margin that ranges from 83.5 basis points to 125 bps, depending on long-term senior unsecured debt ratings.

The facility fee ranges from 4 bps to 12.5 bps, also depending on ratings.

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

Proceeds will be used for general corporate purposes, including for working capital purposes, and to support the company’s commercial paper program.

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

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