SoFi CEO enters prepaid forward contract on 1.5 million shares
Ingredion Inc. (NYSE:INGR), a global ingredients solutions provider with a market capitalization of $8.28 billion and an "GREAT" financial health rating according to InvestingPro, announced Wednesday it has entered into a new five-year unsecured revolving credit agreement with JPMorgan Chase Bank, N.A., J.P. Morgan SE, and other lenders. The agreement, dated August 27, 2025, replaces the company’s previous credit facility, according to a statement based on a Securities and Exchange Commission filing.
The new credit facility allows Ingredion to borrow up to $1 billion at any time, with up to $25 million available as swingline loans and up to $50 million for letters of credit. The company also has the option to request additional revolving commitments or new term loan facilities for up to $750 million, subject to customary conditions. Subsidiaries of Ingredion may borrow up to $500 million under the facility, provided certain requirements are met. As of the effective date, no amounts have been drawn under the new agreement.
Interest on borrowings will be based on either the secured overnight financing rate (SOFR) plus a margin, or a base rate determined by the highest of the prime rate, federal funds rate plus 0.50%, or the one-month SOFR rate plus 1.00%, plus a margin. The applicable margin and commitment fees are set according to Ingredion’s debt ratings or leverage ratio. As of the agreement date, the margin for SOFR loans is 1.00%, while the margin for base rate loans is 0.00%. The unused commitment fee is 0.09% per annum.
The revolving credit facility matures on August 27, 2030. Loans can be prepaid at any time without penalty, except for breakage costs on SOFR-based borrowings.
The agreement includes customary covenants, such as limits on additional indebtedness and asset sales, and requires Ingredion to maintain a maximum leverage ratio of 3.5 to 1.0 and a minimum consolidated EBITDA to net interest expense ratio of 3.5 to 1.0. The company appears well-positioned to meet these requirements, with InvestingPro data showing strong liquidity metrics including a current ratio of 2.78 and moderate leverage with a debt-to-equity ratio of 0.43. For deeper insights into Ingredion’s financial health and access to comprehensive analysis, investors can explore the detailed Pro Research Report available on InvestingPro, covering over 1,400 US stocks. Standard events of default apply, including payment defaults and change of control. According to InvestingPro analysis, Ingredion maintains strong cash flows that sufficiently cover interest payments, suggesting minimal default risk.
The prior revolving credit agreement, entered into on June 30, 2021, was terminated in connection with the new facility. The previous agreement would have matured on June 30, 2026.
This summary is based on a press release statement filed with the SEC.
In other recent news, Ingredion Incorporated announced its second-quarter earnings for 2025, presenting a mixed financial outcome. The company reported earnings per share (EPS) of $2.87, surpassing the forecasted $2.80. However, revenue fell short of expectations, reaching $1.8 billion compared to the anticipated $1.89 billion. These developments highlight the complexities facing Ingredion as it navigates through current market conditions. Despite the EPS beat, the revenue shortfall has raised concerns among investors. Analysts and investors are closely monitoring these financial results to assess the company’s performance and outlook. The recent earnings call reflects ongoing challenges in meeting revenue targets while maintaining profitability.
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