CTVA · 8-K · 20260806PR338406

Interest Rate and Refinancing Exposure

Corteva, Inc. · 2026-08-06 · Importance 46 · Surprise 42 · In source text

Vylor entered into a $3.0 billion five-year revolving facility, a $1.5 billion 364-day revolving facility and a $2.75 billion delayed-draw term facility on August 6, 2026. Borrowings under these facilities bear interest at Term SOFR plus an applicable margin, exposing Vylor to variable-rate financing costs. Pro forma interest expense is estimated at $164 million for 2025 and $31 million for the three months ended March 31, 2026, based on an approximately 4.66% weighted-average rate. A 0.125 percentage-point change in the estimated weighted-average rate would change annual pro forma interest expense by approximately $4 million.

Key facts

• Summary of debt pro forma shows Capital Markets Indebtedness aggregate principal amount $1,156 million at 5.23% producing $16 million pro forma interest for the three months ended March 31, 2026 and $62 million for year ended December 31, 2025. source
• Summary of debt pro forma shows Revolving Credit Facilities aggregate principal amount $3,078 million at an implied 4.67% producing $0 million pro forma interest for the three months ended March 31, 2026 and $44 million for year ended December 31, 2025. source
• The Five-Year Revolving Credit Facility contains a financial covenant requiring that the ratio of total indebtedness to total capitalization for Vylor and its consolidated subsidiaries not exceed 0.60. source
• The 364-Day Revolving Credit Agreement contains a financial covenant requiring that the ratio of total indebtedness to total capitalization for Vylor and its consolidated subsidiaries not exceed 0.60. source
• Amounts borrowed under the Five-Year Revolving Credit Facility are subject to an interest rate per annum equal to Term SOFR plus the applicable margin. source
• Amounts borrowed under the 364-Day Revolving Credit Facility are subject to an interest rate per annum equal to Term SOFR plus the applicable margin. source
• The maturity date of the Five-Year Revolving Credit Facility is five years from its closing date. source
• The maturity date of the 364-Day Revolving Credit Facility is 364 days from its closing date. source

Impact estimates