Loan & DebtJun 23, 2026, 04:43 PM
International Flavors & Fragrances Secures $1B Term Loan
AI Summary
International Flavors & Fragrances Inc. (IFF) entered into a Term Loan Credit Agreement for a $1 billion senior unsecured delayed draw term loan facility. The facility, maturing on December 31, 2027, will be used to refinance the company's €800 million 1.800% Senior Notes due September 25, 2026. The loan features interest rates tied to the company's public debt ratings and includes a mandatory prepayment clause linked to the anticipated $3.8 billion net cash proceeds from the sale of its Food Ingredients business segment.
Key Highlights
- Secured a $1,000,000,000 senior unsecured delayed draw term loan facility.
- Proceeds will refinance €800 million (approx. $860 million) of 1.800% Senior Notes due September 25, 2026.
- The facility matures on December 31, 2027.
- Interest bears at Term SOFR plus an applicable margin ranging from 0.875% to 1.500% based on public debt ratings.
- Mandatory prepayment required with 100% of net cash proceeds from the Food Ingredients Business Sale.
- Food Ingredients Business Sale expected to generate approximately $3.8 billion in net cash proceeds.
- Financial covenant requires maintaining a maximum net debt to consolidated EBITDA ratio of 3.75 to 1.00.
Price Impact
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