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Kraft Heinz Co (NASDAQ:KHC), currently trading near its 52-week low of $25.44, announced Tuesday that it has amended its existing credit agreement, extending the maturity date of its $4.0 billion revolving credit facility by one year to July 8, 2030. According to InvestingPro data, the company maintains a healthy current ratio of 1.31, indicating strong liquidity position. The amendment was executed by the company and its wholly owned subsidiary, Kraft Heinz Foods Co, in partnership with its lenders and JPMorgan Chase (NYSE:JPM) Bank, N.A., which serves as the administrative agent.
The original credit agreement was dated July 8, 2022, with a previous maturity date of July 8, 2029. The newly signed fourth amendment also includes certain revisions to the minimum shareholders’ equity financial covenant and related definitions within the agreement.
The company’s common stock and senior notes are listed on The Nasdaq Stock Market LLC under the symbols KHC, KHC29, and KHC33.
This information is based on a statement released in a filing with the Securities and Exchange Commission.
In other recent news, Kraft Heinz has announced a significant initiative to remove artificial colors from its U.S. product lineup by the end of 2027. The company stated that nearly 90% of its products are already free from synthetic dyes, and it plans to either remove or replace the remaining artificial colors with natural alternatives. This effort aligns with broader industry trends, as other companies like W.K. Kellogg and Tyson Foods (NYSE:TSN) are also moving towards eliminating artificial dyes. Additionally, Kraft Heinz is undergoing changes at the board level, with two directors, Timothy Kenesey and Alicia Knapp, stepping down. This follows Berkshire Hathaway (NYSE:BRKa)’s decision to relinquish its board representation, reducing the board size from 12 to 10 members. Stifel analysts have maintained a Hold rating on Kraft Heinz, with a price target of $30, noting the company’s ongoing evaluation of strategic options to enhance growth and profitability. The company is focusing on divesting from slower-growing segments while potentially acquiring businesses aligned with its Priority Platforms, such as sauces and condiments. These developments come as Kraft Heinz continues to explore strategic transactions aimed at bolstering shareholder value.
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