THE WHAT? International Flavors & Fragrances (IFF) has secured a US$1 billion senior unsecured delayed draw term loan to refinance debt ahead of the maturity of its €800 million senior notes in 2026.
THE DETAILS The facility allows IFF to make a single borrowing through September 25, 2026, with the loan maturing on December 31, 2027. The company intends to use the proceeds, together with existing cash reserves, to refinance its €800 million 1.800% Senior Notes due in September 2026. Under the agreement, IFF must use 100% of the net cash proceeds from the planned sale of its Food Ingredients business to repay the loan. The divestment is expected to generate approximately US$3.8 billion in net proceeds and is anticipated to close by the end of the second quarter of 2027. The financing also includes a covenant requiring IFF to maintain a maximum net debt-to-EBITDA ratio of 3.75:1.
THE WHY? The financing provides IFF with bridge funding to manage upcoming debt maturities while it completes the planned sale of its Food Ingredients business. The arrangement supports the company’s broader strategy of strengthening its balance sheet, maintaining financial flexibility and reducing leverage following the divestment.
Source: Stock Tianan
