Monster Beverage Secures $2B Credit Facility

TL;DR

Monster just locked in a $2B credit line until 2029, giving them major financial firepower.

AI Summary

On May 22, 2024, Monster Beverage Corp. entered into a material definitive agreement, specifically a credit agreement, which creates a direct financial obligation for the registrant. The agreement is a $2.0 billion revolving credit facility, with an initial commitment of $1.0 billion, maturing on May 22, 2029. This facility is intended to provide financial flexibility for general corporate purposes.

Why It Matters

This new credit facility provides Monster Beverage with significant financial flexibility, potentially enabling strategic investments or acquisitions without immediate reliance on equity or debt markets.

Risk Assessment

Risk Level: low — The filing concerns a routine credit agreement, which is a standard financial tool for large corporations and does not indicate any unusual or immediate risks.

Key Numbers

• $2.0B — Credit Facility Size (Provides substantial borrowing capacity for corporate needs.)
• $1.0B — Initial Commitment (Represents the immediate available funds under the facility.)
• 5 years — Maturity Term (The credit facility is available until May 22, 2029.)

Key Players & Entities

• Monster Beverage Corp. (company) — Registrant
• May 22, 2024 (date) — Date of agreement
• $2.0 billion (dollar_amount) — Total credit facility amount
• $1.0 billion (dollar_amount) — Initial commitment amount
• May 22, 2029 (date) — Maturity date of credit facility

FAQ

Key Financial Figures

• $750 million — ity in an aggregate principal amount of $750 million (the "Term Loan Facility"), to be made
• $750 m — ity in an aggregate principal amount of $750 million, including a $50 million sublimit
• $50 million — pal amount of $750 million, including a $50 million sublimit for the issuance of letters of
• $75 million — the issuance of letters of credit and a $75 million sublimit for swingline loans, to be mad

Filing Documents

• tm2415312d1_8k.htm (8-K) — 29KB
• tm2415312d1_ex10-1.htm (EX-10.1) — 860KB
• 0001104659-24-064691.txt ( ) — 1247KB
• mnst-20240522.xsd (EX-101.SCH) — 3KB
• mnst-20240522_lab.xml (EX-101.LAB) — 33KB
• mnst-20240522_pre.xml (EX-101.PRE) — 22KB
• tm2415312d1_8k_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On May 22, 2024, Monster Beverage Corporation (the "Company"), Monster Energy Company ("MEC") and Monster Energy US LLC ("MEUS") entered into a credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and the lenders party thereto (the "Credit Agreement"). The Credit Agreement provides for (i) a three-year unsecured delayed draw term loan facility in an aggregate principal amount of $750 million (the "Term Loan Facility"), to be made available to the Company for a period of three months following the effective date of the Credit Agreement and (ii) a five-year unsecured revolving credit facility in an aggregate principal amount of $750 million, including a $50 million sublimit for the issuance of letters of credit and a $75 million sublimit for swingline loans, to be made available to the Company, MEC, MEUS and certain other subsidiaries of the Company designated as a revolving borrower from time to time (the "Revolving Facility" and, collectively with the Term Loan Facility, the "Facilities"). The Credit Agreement provides that (i) loans under the Term Loan Facility will be denominated in U.S. Dollars and (ii) loans under the Revolving Facility will be denominated in U.S. dollars, British pound sterling or euros. The Company may request an increase in the principal amounts of the Facilities available under the Credit Agreement in an aggregate principal amount of up to $750 million, to the extent that existing and/or new lenders agree to provide such additional amounts. All outstanding amounts under the Credit Agreement advanced pursuant to the Revolving Facility are due and payable on May 22, 2029 however, the maturity date of the Revolving Facility may be extended with the written consent of more than 50% of the lenders under the Revolving Facility for up to two additional one-year periods. All outstanding amounts under the Credit Agreement advanced pursuant to the Term Loan Facility are due

03 Creation of a Direct Financial Obligation or an Obligation under an

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The disclosure set forth under

01 is incorporated herein by reference

Item 1.01 is incorporated herein by reference.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit 10.1 Credit Agreement dated as of May 22, 2024 among Monster Beverage Corporation, Monster Energy Company, Monster Energy US LLC, JPMorgan Chase Bank, N.A., as administrative agent and the lenders party thereto. Exhibit 104 The cover page from this Current Report on Form 8-K, formatted in iXBRL (Inline eXtensible Business Reporting Language).

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Monster Beverage Corporation Date: May 23, 2024 /s/ Hilton H. Schlosberg Hilton H. Schlosberg Vice Chairman of the Board of Directors and Co-Chief Executive Officer

View Full Filing

View this 8-K filing on SEC EDGAR