MKC-V · McCormick & Company, Incorporated

McCormick & Company has secured a $2.0 billion term loan facility to support its pending acquisition of Unilever's foods business, a transformative transaction that will significantly expand McCormick's product portfolio and scale. The Term Loan Agreement, dated April 28, 2026, provides committed financing at closing, subject to customary conditions. The floating-rate pricing tied to McCormick's credit ratings offers flexibility, while the ticking fee incentivizes timely closing. The financial covenant requiring a minimum 3.75x EBITDA-to-interest coverage ratio is typical for investment-grade borrowers and provides lenders with protection. By replacing $2.0 billion of the previously arranged $15.7 billion bridge facility with this term loan, McCormick is optimizing its capital structure, likely reducing overall financing costs. The successful execution of this financing is a critical step toward completing the merger, which is expected to close upon satisfaction of conditions including regulatory approvals. Investors should monitor the merger timeline and any changes in McCormick's credit ratings that could affect borrowing costs.