Liquidity Panic Reaches Staples: Kraft Heinz To Fully Draw Down $4 Billion Revolver | WHAT REALLY HAPPENED X-Frame-Options: SAMEORIGIN

Liquidity Panic Reaches Staples: Kraft Heinz To Fully Draw Down $4 Billion Revolver

Last week investors were shocked when a barrage of major US corporations - including Boeing, Hilton, Wynn and a handful of PE portfolio companies - announced their decision to fully draw down on their existing credit lines. That said, for all the ominous banking crisis undertones - many still remember that one of the early symptoms of the global financial crisis was countless companies whose revolvers were pulled by a panicking banking sector - there was a common theme linking all these companies: they were all in sectors (airlines, casinos, lodging, energy) that were directly impacted by either the coronavirus pandemic or the recent oil price war.

Today, that changed when food giant Kraft Heinz - which should be benefiting generously from the recent food hoarding panic - was set to also draw down on its credit facility of as much as $4 billion, even though it faced none of the same coronavirus/oil headwinds as so many other companies that jumped the gun to boost their liquidity while they still could.

"We maintain our $4.0 billion senior credit facility, and subject to certain conditions, we may increase the amount of revolving commitments and/or add additional tranches of term loans in a combined aggregate amount of up to$1.0 billion," the company said.

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