By Cristal Cody
Tupelo, Miss., May 22 – Coca-Cola Co. sold $1 billion of senior notes (Aa3/AA-/A+) in two tranches on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company priced $500 million of 2.2% five-year notes at 99.802 to yield 2.242%, a spread of 45 basis points over Treasuries.
Coca-Cola sold $500 million of 2.9% 10-year notes at 99.595 to yield 2.947%, or Treasuries plus 70 bps.
The notes priced on the tight side of guidance.
J.P. Morgan Securities LLC, BofA Merrill Lynch and Santander Investment Securities Inc. were the bookrunners.
Proceeds will be used to purchase any notes tendered and accepted in the company’s tender offer and to pay consent payments in connection with any accepted consents. Any remaining proceeds will be used for general corporate purposes.
Coca-Cola is an Atlanta-based beverage company.
| Issuer: | Coca-Cola Co.
|
| Amount: | $2 billion
|
| Description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch and Santander Investment Securities Inc.
|
| Co-managers: | Siebert Cisneros Shank & Co., LLC, Drexel Hamilton, LLC and Lebenthal & Co., LLC
|
| Trade date: | May 22
|
| Settlement date: | May 25
|
| Ratings: | Moody’s: Aa3
|
| S&P: AA-
|
| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | May 25, 2022
|
| Coupon: | 2.2%
|
| Price: | 99.802
|
| Yield: | 2.242%
|
| Spread: | Treasuries plus 45 bps
|
| Make-whole call: | Treasuries plus 7.5 bps
|
| Price guidance: | Treasuries plus 50 bps area, plus or minus 5 bps
|
|
|
| Ten-year notes
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| Amount: | $500 million
|
| Maturity: | May 25, 2027
|
| Coupon: | 2.9%
|
| Price: | 99.595
|
| Yield: | 2.947%
|
| Spread: | Treasuries plus 70 bps
|
| Make-whole call: | Treasuries plus 12.5 bps
|
| Price guidance: | Treasuries plus 75 bps area, plus or minus 5 bps
|
|
|
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