Wm. Wrigley Jr. Co., the world's largest chewing-gum maker, said it's planning to refinance as much as $3.5 billion of its secured term loans to reduce interest costs and gain "greater flexibility."
The transaction will replace existing bank debt with secured term loans, unsecured debt and cash on hand, the Chicago-based company said today in a statement. Wrigley also has operations in Yorkville.
Wrigley, bought for $22.6 billion in October 2008 by Mars Inc. in a deal backed by billionaire Warren Buffett's Berkshire Hathaway Inc., has $9.83 billion of debt, according to the statement. The term loans it's seeking to refinance have $4.43 billion outstanding, the company said. Wrigley said it expects to complete the deal this year.
The company's other outstanding debt includes $4.4 billion of subordinated notes, $500 million of 4.3 percent senior unsecured notes and $500 million of 4.65 percent senior unsecured notes, according to the statement. Wrigley, whose products include Juicy Fruit gum and Altoids mints, said it has a $250 million revolving credit line that is currently unused and available.
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