Conagra Brands gets $1.25 billion five-year revolving credit facility

By Marisa Wong

Morgantown, W.Va., Feb. 17 – Conagra Brands, Inc. entered into a $1.25 billion unsecured revolving credit agreement on Feb. 16, according to an 8-K filed Friday with the Securities and Exchange Commission.

Merrill Lynch, Pierce, Fenner & Smith, Inc., JPMorgan Chase Bank, NA and Mizuho Bank, Ltd. are the joint lead arrangers and joint bookrunners. Bank of America, NA is administrative agent, JPMorgan Chase Bank, NA is syndication agent, and Mizuho Bank, MUFG, Wells Fargo Bank, NA and Goldman Sachs Bank USA are documentation agents.

The credit facility may be increased to a maximum of $1.75 billion.

The revolver matures on Feb. 16, 2022 and may be extended for additional one-year or two-year periods on an annual basis.

Loans will bear interest at Libor plus 91 basis points to 150 bps, depending on the company’s senior unsecured long-term debt ratings. Additionally, the company has the right to request bid loans with a lower, fixed interest rate.

The company will also pay a facility fee ranging from 9 bps to 25 bps, based on debt ratings.

The credit agreement includes financial covenants requiring a maximum leverage ratio and a minimum interest coverage ratio.

The facility replaces the company’s revolving credit facility dated Sept. 14, 2011. The prior credit agreement was set to expire on Sept. 14, 2018. No borrowings were outstanding under the prior revolver upon its termination.

The packaged food company based is based in Chicago.

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