Ingredion enters $1 billion five-year revolver at Libor plus 125 bps

By Wendy Van Sickle

Columbus, Ohio, Oct. 17 – Ingredion Inc. entered into a new $1 billion five-year multi-currency senior unsecured revolving credit facility on Oct. 11, according to an 8-K filed with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA and Bank of America Merrill Lynch were the joint bookrunners and lead arrangers; JPMorgan the administrative agent; Bank of America, NA the syndication agent, and Branch Banking and Trust Co., Bank of Montreal, Wells Fargo Bank, NA, Mizuho Bank, Ltd., HSBC Bank USA, NA, Citibank, NA, ING Capital LLC and PNC Bank, NA the co-documentation agents.

Initial interest is Libor plus a margin of 125 basis points with a commitment fee of 15 bps. The margin can range from 100 bps to 175 bps and the commitment fee from 10 bps to 25 bps, both depending on Ingredion’s credit ratings.

The revolver matures Oct. 11, 2021 and has two one-year extension options. There is also an accordion feature allowing for up to $500 million in additional commitments.

The company must comply with a leverage ratio and interest coverage ratio.

Borrowings may be used for general corporate purposes; the revolver was undrawn at closing.

The new credit facility replaces the company’s $1 billion revolver dated Oct. 22, 2012 with JPMorgan Chase Bank, NA as agent, which had a scheduled maturity of Oct. 22, 2017.

Ingredion is a Westchester, Ill.-based maker of starches and sweeteners.

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