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Financing Arrangements
 12 Months Ended
Dec. 31, 2021
Financing Arrangements  
Financing Arrangements

NOTE 8 – Financing Arrangements

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Ingredion had total debt outstanding of approximately $2.0 billion and $2.2 billion at December 31, 2021 and 2020, respectively. Short-term borrowings at December 31, 2021, consist primarily of commercial paper borrowings and amounts outstanding under various unsecured local country operating lines of credit.

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During 2021, Ingredion amended, restated and later repaid in full the $380 million of borrowings outstanding under the term loan credit agreement that was amended and restated on March 16, 2021 (the “Term Loan Credit Agreement”). The Term Loan Credit Agreement restated the previous agreement by extending the maturity date of the borrowings under the previous agreement until March 15, 2022. No new borrowings under the Term Loan Credit Agreement were incurred in connection with the amendment and restatement. Borrowings under the Term Loan Credit Agreement bore interest at a variable annual rate based on a London Interbank Offering Rate (“LIBOR”) or a base rate, at Ingredion’s election, subject to the terms and conditions thereof, plus, in each case, an applicable margin. The Term Loan Credit Agreement reduced the applicable interest rate margin for loans accruing interest based on LIBOR from 0.80 percent to 0.75 percent. Ingredion was required to pay a fee on the unused availability under the Term Loan Credit Agreement. The Term Loan Credit Agreement contained customary representations, warranties, covenants and events of default, including covenants restricting the incurrence of liens, the incurrence of indebtedness by Ingredion’s subsidiaries, and certain fundamental changes involving Ingredion and its subsidiaries, subject to certain exceptions in each case. Ingredion also had to maintain a specified maximum consolidated leverage ratio and a specified minimum consolidated interest coverage ratio.

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On June 30, 2021, Ingredion entered into a new revolving credit agreement (the “Revolving Credit Agreement”) to replace the previous revolving credit agreement, which was terminated. The Revolving Credit Agreement provides for a five-year unsecured revolving credit facility in an aggregate principal amount of $1 billion outstanding at any time and the facility will mature on June 30, 2026. Loans under the facility will accrue interest at a per annum rate equal, at Ingredion’s option, to either a specified LIBOR plus an applicable margin, or a base rate (generally determined according to the highest of the prime rate, the federal funds rate or the specified LIBOR plus 1.00 percent) plus an applicable margin. The Revolving Credit Agreement contains customary affirmative and negative covenants that, among other matters, specify customary reporting obligations, and that, subject to exceptions, restrict the incurrence of additional indebtedness by Ingredion’s subsidiaries, the incurrence of liens and the consummation of certain mergers, consolidations and sales of assets. Ingredion is subject to compliance, as of the end of each quarter, with a maximum leverage ratio of 3.5 to 1.0 and a minimum ratio of consolidated EBITDA to consolidated net interest expense of 3.5 to 1.0, as each such financial covenant is calculated for the most recently completed four-quarter period. As of December 31, 2021, Ingredion was in compliance with these financial covenants. In addition to borrowing availability under its Revolving Credit Agreement, as of December 31, 2021, Ingredion had approximately $641 million of unused operating lines of credit in the various foreign countries in which it operates.

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On July 27, 2021, Ingredion established a commercial paper program under which Ingredion may issue senior unsecured notes of short maturities up to a maximum aggregate principal amount of $1 billion outstanding at any time. The notes may be sold from time to time on customary terms in the U.S. commercial paper market. Ingredion intends to use the note proceeds for general corporate purposes. Since the program was established, the average amount of commercial paper outstanding was $670 million with an average interest rate of 0.27 percent and a weighted average maturity of 48 days. As of December 31, 2021, $250 million of commercial paper was outstanding with an average

interest rate of 0.35 percent and a weighted average maturity of 40 days. The amount of commercial paper outstanding under this program in 2022 is expected to fluctuate.

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Presented below are Ingredion’s debt carrying amounts, net of related discounts, premiums and debt issuance costs and fair values as of December 31, 2021 and 2020:

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2021

​

2020

​

​

​

Carrying

​

Fair

​

Carrying

​

Fair

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(in millions)

    

Value

    

Value

    

Value

    

Value

 

2.900% senior notes due June 1, 2030

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$

595

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$

619

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$

594

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$

596

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3.200% senior notes due October 1, 2026

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​

498

​

​

531

​

​

497

​

​

500

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3.900% senior notes due June 1, 2050

​

​

390

​

​

455

​

​

390

​

​

395

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6.625% senior notes due April 15, 2037

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​

253

​

​

350

​

​

253

​

​

246

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Revolving credit agreement

​

​

—

​

​

—

​

​

—

​

​

—

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Other long-term borrowings

​

​

2

​

​

2

​

​

14

​

​

14

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Total long-term debt

​

​

1,738

​

​

1,957

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​

1,748

​

​

1,751

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Term loan credit agreement due April 12, 2021

​

​

—

​

​

—

​

​

380

​

​

380

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Commercial paper

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​

250

​

​

250

​

​

—

​

​

—

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Other short-term borrowings

​

​

58

​

​

58

​

​

58

​

​

58

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Total short-term borrowings

​

​

308

​

​

308

​

​

438

​

​

438

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Total debt

​

$

2,046

​

$

2,265

​

$

2,186

​

$

2,189

​

​

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Ingredion guarantees certain obligations of its consolidated subsidiaries. The amount of the obligations guaranteed aggregated was $61 million and $58 million at December 31, 2021 and 2020, respectively.