Zoetis enters $1 billion five-year replacement senior revolver

By Marisa Wong

Los Angeles, Dec. 21 – Zoetis Inc. entered into a revolving credit agreement on Dec. 21 with a syndicate of banks for a five-year $1 billion senior unsecured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The company will have the right to increase the commitments under the credit agreement to up to $1.5 billion.

Loans will bear interest at adjusted term SOFR plus an applicable margin that ranges from 80.5 basis points to 122.5 bps. Additionally, the company will pay a facility fee of 7 bps to 15 bps. The applicable margin and the facility fee are determined based on the public ratings of the company’s senior unsecured non-credit enhanced long-term debt.

No mandatory prepayment is required under the credit agreement.

The credit agreement contains a financial covenant requiring the company to not exceed a maximum total leverage ratio.

The credit agreement is not guaranteed by the company’s subsidiaries.

JPMorgan Chase Bank, NA, Barclays Bank plc, BofA Securities, Inc., Citigroup Global Markets Inc. and MUFG Bank, Ltd. are the joint lead arrangers and joint bookrunners.

JPMorgan is administrative agent, and Barclays, Bank of America, NA, Citibank, NA and MUFG are syndication agents.

Banco Bilbao Vizcaya Argentaria, SA New York Branch, Bank of China, New York Branch, BNP Paribas, Cooperatieve Rabobank UA, New York Branch, Goldman Sachs Bank USA, HSBC Bank USA, NA, Standard Chartered Bank and TD Bank, NA are documentation agents.

The credit agreement replaces the company’s existing revolving credit facility dated Dec. 21, 2016, which was scheduled to expire in December 2023. The company terminated the prior credit agreement on Wednesday.

Zoetis is an animal medicine and vaccine company based in Parsippany, N.J.

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