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Monsanto obtains $3 billion revolver at Libor plus 69-110 bps
By Toni Weeks
San Luis Obispo, Calif., April 2 – Monsanto Co. entered into a $3 billion five-year revolving credit agreement on March 27 with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.
The new agreement replaces the company’s $2.5 billion four-year revolving credit agreement dated April 1, 2011, which has been terminated.
The facility, which matures on Mary 27, 2020, has an accordion feature to push the total amount to $3.75 billion. The company may request two one-year extensions of the termination date.
Under the agreement terms, the company may obtain and utilize from time to time up to $3 billion in revolving credit loans and competitive bid advances for general corporate purposes. Loans may be made in dollars, euros, pounds sterling or yen.
Interest accrues at Libor plus 69 basis points to 110 bps, and there is a facility fee of 6 bps to 15 bps. Both are based on credit ratings.
Up to $300 million is available for the issuance of letters of credit, and up to $200 million is available for swingline loans, both in dollars and available on a same-day basis.
Under the agreement, Monsanto may not permit its consolidated leverage ratio to exceed 3.5 times.
Bank of America, NA and Morgan Stanley Senior Funding, Inc. are co-syndication agents. Barclays Bank plc, Goldman Sachs Bank USA, Bank of Tokyo-Mitsubishi UFJ, Ltd. and Wells Fargo Bank, NA are co-documentation agents. J.P. Morgan Securities LLC, Citigroup Global Markets Inc., BofA Merrill Lynch and Morgan Stanley Senior Funding are co-lead arrangers and joint bookrunners.
The company provides agricultural products for farmers and is based in St. Louis.
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