Ingredion secures $1.48bn senior unsecured term loan facility
What's the deal? Ingredion IncorporatedDealroom has a profile for this one. Try Dealroom → has secured a $1.48 billion senior unsecured delayed draw term loan facility, according to an SEC filing.
The loan is unsecured and can be drawn down under specified conditions and timelines. It is designed to give the ingredients maker flexibility for future capital needs.
Why now? The new facility complements Ingredion's existing $1 billion revolving credit line, established on June 30, 2021, and set to mature on June 30, 2026.
That revolver allows for incremental commitments or new term loans up to $750 million, with up to $500 million extended to eligible subsidiaries.
The interest rate will track the company's credit ratings or leverage ratios. It also carries sustainability-linked adjustments that shift with greenhouse gas emissions targets.
What could go wrong? The loan comes with customary covenants, including a maximum leverage ratio of 3.5 to 1.0 and a minimum EBITDA-to-interest expense ratio of 3.5 to 1.0.
Events of default include missed payments, covenant breaches, cross-defaults to other material debt, and changes in control.
The signal: For a mature ingredients maker that turns plant sources such as corn, tapioca, and potato into sweeteners and starches, the timing of the facility — drawn up as its existing revolver nears its June 2026 maturity — points to a refinancing-driven move to shore up liquidity. The sustainability-linked pricing also signals how environmental targets are increasingly baked into the cost of capital for established agricultural processors.
Read more: ainvest.com
Image credit: w_lemay
