Kraft Foods Inc said on Tuesday it has entered into a three-year agreement for $4.5 billion of senior unsecured revolving credit, replacing a previous agreement the company uses for general operating expenses. The agreement announced on Tuesday is separate from a $9.2 billion unsecured term loan Kraft took out to help finance its hostile take-over bid for Cadbury Plc.
The revolving credit facility replaces a previous one for the same amount that expired November 30 and can be increased by up to $500 million upon request. Kraft said the new agreement is not materially different from the old.
Deutsche Bank Securities Inc, Citigroup Global Markets Inc and HSBC Securities (USA) Inc served as joint bookrunners, while Deutsche Bank AG New York Branch and Citibank, N.A., as co-administrative agents, according to the filing.
Shares of Kraft rose to $26.56 in after-hours trading after closing down 0.3 percent to $26.50 on the New York Stock Exchange.