Coca-Cola resets prices for tender offer for 13 series of notes

By Angela McDaniels

Tacoma, Wash., Nov. 22 - Coca-Cola Co. determined the purchase prices it will pay in the tender offer for its $117,325,000 of 7.375% notes due July 29, 2093 as well as 12 series of notes issued by Coca-Cola Refreshments USA, Inc.

The prices were determined using a spread over the bid-side price of a U.S. Treasury note. The company originally set the prices on Nov. 15. On Nov. 16, it changed some of the spreads and said it would reset the prices at 2 p.m. ET on Nov. 22.

For each $1,000 principal amount, the company will pay:

• $1,278.74 for Coca-Cola Refreshments' $300 million of 7.125% debentures due Aug. 1, 2017;

• $1,117.40 for the subsidiary's $250 million of 4.5% notes due Aug. 15, 2019;

• $736.98 for its $488.56 million of zero-coupon notes due June 20, 2020;

• $1,458.02 for its $745,617,000 of 8.5% debentures due Feb. 1, 2022;

• $1,424.64 for its $236,533,000 of 8% debentures due Sept. 15, 2022;

• $1,319.37 for its $250 million of 6.75% debentures due Sept. 15, 2023;

• $1,302.29 for its $299.95 million of 7% debentures due Oct. 1, 2026;

• $1,305.07 for its $500 million of 6.95% debentures due Nov. 15, 2026;

• $1,281.91 for its $400 million of 6.75% debentures due Sept. 15, 2028;

• $1,290.15 for its $299.99 million of 6.7% debentures due Oct. 15, 2036;

• $1,295.52 for its $250 million of 6.75% debentures due Jan. 15, 2038;

• $1,344.28 for its $250 million of 7% debentures due May 15, 2098; and

• $1,414.28 for Coca-Cola's 7.375% notes.

The prices for the first six series of notes were based on the 2.625% Treasury due Aug. 15, 2020. The spreads were negative 25 basis points, 15 bps, 40 bps, 70 bps, 75 bps and 80 bps, respectively, for the 7.125% notes, 4.5% notes, zero-coupon notes, 8.5% notes, 8% notes and 6.75% notes due 2023.

The prices for the remaining notes were based on the 4.375% Treasury due May 15, 2040. The 7% notes, 6.95% notes, 6.75% notes due 2028, 6.7% notes, 6.75% notes due 2038, 7% notes and 7.375% notes had spreads of 10 bps, 5 bps, 20 bps, 50 bps, 55 bps, 95 bps and 95 bps, respectively.

This tender offer was scheduled to expire at 5 p.m. ET on Nov. 22.

Coca-Cola announced on Nov. 4 two separate cash tender offers for several series of notes issued by Coca-Cola and Coca-Cola Enterprises Inc.

The company acquired the assets and liabilities of Coca-Cola Enterprises' North American business as well as the Coca-Cola Enterprises corporate entity, which was renamed Coca-Cola Refreshments.

Second offer

In the second offer, the company is offering to purchase up to $3.45 billion of its 4.875% notes due March 15, 2019 and 5.35% notes due Nov. 15, 2017.

Pricing for the two series of notes will be set using the bid-side price of a U.S. Treasury note at 2 p.m. ET on Nov. 30 as follows:

• The price for the $1.35 billion of 4.875% notes will be calculated using the 2.625% Treasury note due Aug. 15, 2020 plus 20 bps;

• The price for the $1.75 billion of 5.35% notes will be based on the 2.625% Treasury note due Aug. 15, 2020 minus 25 bps.

The notes are listed in order of priority acceptance level.

The total payout will include a $30.00 early premium for notes tendered by 5 p.m. ET on Nov. 18, the early tender date.

The second offer will end at 11:59 p.m. ET on Dec. 14, pushed back from 8 a.m. ET on Dec. 6.

Coca-Cola also will pay accrued interest up to, but not including, the settlement date.

Deutsche Bank Securities Inc. (866 627-0391 or collect 212 250-2955) and HSBC Securities (USA) Inc. (888 HSBC4LM or collect 212 525-5552) are coordinating dealer managers, and Goldman Sachs & Co. and Merrill Lynch, Pierce, Fenner & Smith Inc. are dealer managers. D.F. King & Co., Inc. (800 901-0068 or collect 212 269-5550) is the tender and information agent.

Coca-Cola is a beverage manufacturer and distributor based in Atlanta.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.