Published on 3/3/2022 in the Prospect News Investment Grade Daily.
New Issue: Mondelez International sells $2 billion of notes due 2024, 2027, 2032
By Wendy Van Sickle
Columbus, Ohio, March 3 – Mondelez International, Inc. priced $2 billion of notes in three series (Baa1/BBB) on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $500 million of 2.125% two-year notes at 99.761 to yield 2.248% at a spread to Treasuries of 70 basis points.
Mondelez also priced $750 million of 2.625% five-year notes at 99.744 to yield 2.68%, or at Treasuries plus 93 bps.
Finally, the company priced $750 million of 3% notes due 2032 at 99.265 to yield 3.086%, or at Treasuries plus 123 bps.
Noteholders, in each case, will be able to exercise put rights at 101 plus accrued and unpaid interest if a change-of-control event or a ratings downgrade occurs.
BofA Securities, Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., SG Americas Securities, LLC, BBVA Securities Inc. and Morgan Stanley & Co. LLC are the joint bookrunning managers.
Proceeds from the offering will be used for general corporate purposes, including redeeming $1 billion outstanding 0.625% notes due July 1, 2022 and purchasing for cash up to $850 million in aggregate consideration for a concurrent 11-series tender offer.
Mondelez is a snack company based in Deerfield, Ill.
| Issuer: | Mondelez International, Inc.
|
| Amount: | $2 billion
|
| Issue: | Notes
|
| Bookrunners: | BofA Securities, Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., SG Americas Securities, LLC, BBVA Securities Inc. and Morgan Stanley & Co. LLC
|
| Senior co-managers: | Intesa Sanpaolo SpA, Commerz Markets LLC, Standard Chartered Bank, Rabo Securities USA, Inc., ING Financial Markets LLC and Westpac Capital Markets LLC
|
| Co-managers: | Academy Securities, Inc., Loop Capital Markets LLC, C.L. King & Associates, Inc. and Bancroft Capital, LLC
|
| Counsel to issuer: | Gibson, Dunn & Crutcher LLP and Hunton Andrews Kurth LLP
|
| Counsel to underwriters: | Simpson Thacher & Bartlett LLP
|
| Trade date: | March 3
|
| Settlement date: | March 17
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB
|
|
|
| Two-year notes
|
| Amount: | $500 million
|
| Maturity: | March 17, 2024
|
| Coupon: | 2.125%
|
| Price: | 99.761
|
| Yield: | 2.248%
|
| Spread: | Treasuries plus 70 bps
|
| Call: | Make-whole call at Treasuries plus 12.5 bps
|
| Cusip: | 609207AZ8
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | March 17, 2027
|
| Coupon: | 2.625%
|
| Price: | 99.744
|
| Yield: | 2.68%
|
| Spread: | Treasuries plus 93 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until Feb. 17, 2027, then a par call
|
| Cusip: | 609207BA2
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | March 17, 2032
|
| Coupon: | 3%
|
| Price: | 99.265
|
| Yield: | 3.086%
|
| Spread: | Treasuries plus 123 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps until Dec. 31, 2031, then a par call
|
| Cusip: | 609207BB0
|
|
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