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NYSE: INGR Ingredion Inc 8-K

Ingredion secures $1.475B term loan for Tate & Lyle acquisition, replaces bridge tranche

Filed June 25, 2026 · Period ending June 24, 2026 · ~1 min read

4 key changes 3 high relevance 1 section

Key Changes

  • high

    Ingredion entered a $1.475B delayed draw term loan facility with JPMorgan to fund its acquisition of Tate & Lyle PLC, structured as $500M 3-year and $975M 5-year tranches with 5% annual amortization.

    Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR →
  • high

    The new facility replaces the $1.475B tranche A of Ingredion's previously announced $4.225B bridge loan from June 8, leaving $2.75B in bridge commitments outstanding.

    Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR →
  • high

    Loan proceeds will fund cash consideration for all Tate & Lyle shares, refinance Tate & Lyle's existing debt, and cover transaction costs, with currency hedging required to convert dollars to sterling.

    Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR →
  • medium

    Financial covenants require maximum 3.5x leverage ratio (4.0x for four quarters post-acquisition) and minimum 3.5x interest coverage, consistent with existing credit facilities.

    Item 1.01 — Entry into a Material Definitive Agreement verify on EDGAR →

Summary

Ingredion has secured committed long-term financing for its Tate & Lyle acquisition, replacing $1.475 billion of short-term bridge debt with a delayed draw term loan facility. The new facility consists of a $500 million three-year tranche and a $975 million five-year tranche, both requiring 5% annual amortization with quarterly payments.

JPMorgan serves as administrative agent, and the loans are senior unsecured obligations. This financing step demonstrates progress toward permanent capital structure for the acquisition. The company still has $2.75 billion in bridge commitments outstanding from its June 8 agreement, suggesting additional permanent financing arrangements may follow.

The loan's financial covenants—3.5x maximum leverage with a temporary step-up to 4.0x post-acquisition, and 3.5x minimum interest coverage—mirror Ingredion's existing credit agreement terms, indicating no material tightening of financial flexibility. Proceeds will fund the cash purchase price, refinance Tate & Lyle's debt, and cover transaction expenses, with mandatory currency hedging to match sterling-denominated acquisition payments.

Section-by-Section Diff

Event · Item 1.01 — Entry into a Material Definitive Agreement

~1,500 words

Item 1.01 — Entry into a Material Definitive Agreement filed; see Key Changes for terms.

1 Added
Added Loan maturity and amortization medium

Added in current filing · verify on EDGAR →

To the extent that borrowings are made under the Loan Agreement, the Tranche A-1 Facility loans will mature on the date that is three years after the funding date and the Tranche B-1 Facility loans will mature on the date that is five years after the funding date. Loans advanced under each of the Tranche A-1 Facility and the Tranche B-1 Facility will amortize in quarterly payments in a per annum amount equal to 5% of the outstanding principal amount.

The Tranche A-1 loans have a three-year maturity while Tranche B-1 loans mature in five years from the funding date. Both tranches require quarterly amortization payments equal to 5% per annum of outstanding principal, with prepayment permitted at any time without penalty (subject to customary breakage costs for SOFR-based borrowings).

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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 26, 2026 · How we verify