McCormick & Company, Inc. Enters into Term Loan Agreement

McCormick & Company, Inc. has entered into a Term Loan Agreement for up to $2.0 billion. This facility will be used to finance a portion of the cash consideration for its pending combination with the foods business of Unilever PLC, as well as related fees and expenses. The Term Loan Facility matures three years after the closing date of the merger. The agreement includes a financial covenant requiring McCormick to maintain a Consolidated EBITDA to Interest Expense ratio of at least 3.75:1.00. Interest rates will be based on Term SOFR or Base Rate, plus an applicable margin determined by McCormick's credit ratings. A ticking fee will also be applied to the undrawn portion of the commitments. The agreement contains customary events of default, and upon such an event, commitments may be terminated and borrowings declared due. McCormick has also terminated $2.0 billion of its previously committed bridge loan facility in favor of this Term Loan Agreement.