Ingredion secures $1.475B term loan to fund Tate & Lyle acquisition

Ingredion Incorporated (NYSE: INGR) entered into a Delayed Draw Term Loan Agreement on June 24, 2026, securing a $1.475 billion senior unsecured facility through JPMorgan Chase Bank, N.A. as administrative agent, according to a press release statement.

The facility consists of two tranches: a $500 million Tranche A-1 and a $975 million Tranche B-1. Proceeds are designated to fund the cash consideration for Ingredion's previously announced offer to acquire all issued and to be issued share capital of Tate & Lyle PLC, a company incorporated in England and Wales, as well as to refinance certain Tate & Lyle debt and cover transaction costs.

Borrowings under the facility will be converted into British pound sterling via hedging transactions, as required for payment of the cash consideration. The lender commitments will automatically terminate on February 2, 2028, extendable in specified circumstances to no later than August 3, 2028.

The Tranche A-1 loans will mature three years after the funding date, and Tranche B-1 loans will mature five years after the funding date. Both tranches amortize quarterly at 5% per annum of outstanding principal. Loans may be prepaid without premium or penalty, subject to standard breakage costs.

Interest rates are based on the company's choice of a base rate, term SOFR, or daily simple SOFR, with applicable margins ranging from 1.00% to 1.625% for SOFR-based loans. The agreement requires Ingredion to maintain a maximum leverage ratio of 3.5 to 1.0 and a minimum interest coverage ratio of 3.5 to 1.0.

The new loan replaces the $1.475 billion tranche A commitment under a 364-day Bridge Loan Agreement entered June 8, 2026. The remaining $2.75 billion tranche B commitment under that bridge facility remains outstanding.

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