Loan & DebtJun 25, 2026, 04:22 PM
Ingredion Secures $1.475B Loan for Tate & Lyle Acquisition
AI Summary
Ingredion Incorporated has secured a $1.475 billion senior unsecured delayed draw term loan facility to finance its announced acquisition of Tate & Lyle PLC. The facility is divided into two tranches: $500 million (Tranche A-1) and $975 million (Tranche B-1), with maturities of three and five years, respectively, after funding. The proceeds will cover the cash consideration for the acquisition, refinance Tate & Lyle's existing debt, and pay associated fees and costs. The loan agreement includes customary financial covenants, such as a maximum leverage ratio and a minimum interest coverage ratio.
Key Highlights
- Ingredion entered a Delayed Draw Term Loan Agreement for $1.475 billion.
- The facility consists of a $500 million Tranche A-1 and a $975 million Tranche B-1.
- Proceeds will fund the cash consideration for the acquisition of Tate & Lyle PLC.
- Funds will also refinance certain outstanding indebtedness of Tate & Lyle.
- Tranche A-1 loans mature 3 years after funding; Tranche B-1 loans mature 5 years after funding.
- Loans amortize in quarterly payments equal to 5% per annum of outstanding principal.
- Company must maintain a maximum leverage ratio of 3.5x (4.0x post-acquisition) and minimum interest coverage of 3.5x.
- Commitments automatically terminate on February 2, 2028, with potential extension to August 3, 2028.
Price Impact
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