Monster Beverage Secures $2B Credit Facility

Ticker: MNST · Form: 8-K · Filed: 2024-05-23T00:00:00.000Z

Sentiment: neutral

Topics: credit-facility, financing, corporate-action

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

What is the primary purpose of the $2.0 billion credit facility?

The credit facility is intended to provide financial flexibility for general corporate purposes.

Who are the lenders under this new credit agreement?

The filing does not specify the names of the lenders, only that a credit agreement was entered into.

What is the initial amount committed under the revolving credit facility?

The initial commitment is $1.0 billion.

When does the credit facility mature?

The credit facility matures on May 22, 2029.

Does this credit agreement represent a significant change in Monster Beverage's debt structure?

The filing indicates this is a new credit agreement for general corporate purposes, but the impact on the overall debt structure requires further analysis of the company's balance sheet.

From the Filing

0001104659-24-064691.txt : 20240523 0001104659-24-064691.hdr.sgml : 20240523 20240523161335 ACCESSION NUMBER: 0001104659-24-064691 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 14 CONFORMED PERIOD OF REPORT: 20240522 ITEM INFORMATION: Entry into a Material Definitive Agreement ITEM INFORMATION: Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20240523 DATE AS OF CHANGE: 20240523 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Monster Beverage Corp CENTRAL INDEX KEY: 0000865752 STANDARD INDUSTRIAL CLASSIFICATION: BOTTLED & CANNED SOFT DRINKS CARBONATED WATERS [2086] ORGANIZATION NAME: 04 Manufacturing IRS NUMBER: 471809393 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-18761 FILM NUMBER: 24978368 BUSINESS ADDRESS: STREET 1: 1 MONSTER WAY CITY: CORONA STATE: CA ZIP: 92879 BUSINESS PHONE: 909-739-6200 MAIL ADDRESS: STREET 1: 1 MONSTER WAY CITY: CORONA STATE: CA ZIP: 92879 FORMER COMPANY: FORMER CONFORMED NAME: HANSEN NATURAL CORP DATE OF NAME CHANGE: 19930328 FORMER COMPANY: FORMER CONFORMED NAME: UNIPAC CORP DATE OF NAME CHANGE: 19600201 8-K 1 tm2415312d1_8k.htm FORM 8-K false 0000865752 0000865752 2024-05-22 2024-05-22 iso4217:USD xbrli:shares iso4217:USD xbrli:shares     UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C.  20549   FORM  8-K   CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934   Date of Report (Date of earliest event reported): May 22, 2024   Monster Beverage Corporation (Exact name of registrant as specified in its charter)   Delaware (State or other jurisdiction of incorporation)   001-18761   47-1809393 (Commission File Number)   (IRS Employer Identification No.)   1 Monster Way Corona , California 92879 (Address of principal executive offices and zip code)   ( 951 ) 739 - 6200 (Registrant’s telephone number, including area code)   N/A (Former name or former address, if changed since last report)   Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:   ¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)   ¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)   ¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))   ¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))   Securities registered pursuant to Section 12(b) of the Act:    Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock MNST Nasdaq Global Select Market   Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).   Emerging growth company ¨   If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨           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