Cargill Increases Loan to $1.25 Billion on Demand
(Corrects amount in headline.)
Cargill Inc., the grain distributor that’s the largest closely-held company in the U.S., increased the size of a credit line by 25 percent to $1.25 billion.
The company decided to enlarge the financing, targeted at European and Asian lenders, from $1 billion initially proposed because it drew a surplus of commitments from lenders, spokeswoman Lisa Clemens said in an e-mailed reply to questions.
Cargill agreed to pay initial interest of 65 basis points more than benchmark rates on the one-year revolving credit, according to data compiled by Bloomberg.
The Minneapolis-based company last signed a loan deal in October, when it got two $2.5 billion revolving credit lines for one and three years, each paying interest of 75 basis points over the London interbank offered rate, Bloomberg data show.
The company is rated A2 by Moody’s Investors Service and A by Standard & Poor’s and Fitch Ratings.
Money in a revolving credit can be borrowed again once it’s been repaid. A basis point is 0.01 percentage point.
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