International Flavors & Fragrances: Shares Rally on Amended Debt Covenant Agreement

International Flavors & Fragrances announced amendments to its credit agreement that will give the company higher leverage ratio covenants over the next nine fiscal quarters through Sept. 30, 2025. In exchange, IFF will pay a slightly higher interest rate and is not allowed to raise its dividend. Based on our current forecast, we think IFF should be able to remain within the new covenants, especially by the end of 2024 as the company should close the sale of its Lucas Meyer cosmetic ingredients business by then. As part of the announcement, management reiterated full-year 2023 revenue and adjusted operating EBITDA guidance.