Campbell Soup signs five-year $1.85 billion revolving credit facility

By Wendy Van Sickle

Columbus, Ohio, Sept. 27 – Campbell Soup Co. entered into a five-year $1.85 billion revolving credit agreement on Monday with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The company may increase the commitments up to an additional $500 million.

The maturity date will be Sept. 27, 2026.

Borrowings will bear interest at Libor plus a margin ranging from 91 basis points to 140 bps, and the facility fee ranges from 9 bps to 22.5 bps, both depending on the company’s credit ratings.

The credit agreement contains a minimum consolidated interest coverage ratio of consolidated adjusted EBITDA to consolidated interest expense of not less than 3.25 to 1.00.

Proceeds may be used for working capital and other general corporate purposes.

JPMorgan, Barclays Bank plc, BNP Paribas Securities Corp. and BofA Securities, Inc. are the joint lead arrangers and joint bookrunners.

Barclays, BNP Paribas and BofA Securities are the syndication agents.

The company terminated its three-year credit agreement dated Nov. 2, 2020 in connection with entry into the new credit agreement.

Campbell Soup is a convenience foods company based in Camden, N.J.

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