The Hershey Company has made a short-term credit agreement for a revolving credit facility to borrow up to US$400m - freeing funds for general corporate purposes.

The credit agreement, which will expire on 15 September 2006, was filed by the company with the Securities and Exchange Commission today (16 March).

Hershey entered into a five-year credit agreement enabling it to borrow up to $900m in November 2004. The chocolate producer now expects short-term borrowings to exceed this value during the March-September period due to seasonal working capital needs, share repurchases, and other business activities.