Moody’s assigns A3 to Mondelez notes

Moody’s Investors Service said it assigned A3 ratings to €1.25 billion of senior unsecured Rule 144A notes being offered in two tranches by Mondelez International Holdings Netherlands BV (MIHN), an intermediate holding company wholly owned by Mondelez International, Inc. Mondelez will guarantee the new notes.

The proposed €1.25 billion unsecured notes are being offered in two tranches consisting of €500 million of 0% notes due 2026 and €750 million of 0.375% note due 2029.

Ratings of Mondelez, including its Baa1 senior unsecured ratings are unaffected, the agency said.

“The proposed transactions are credit positive because they will extend maturities and reduce short-term debt without materially affecting cash interest costs,” Moody’s said in a press release.

Proceeds will be used primarily to repay debt at MIHN and parent Mondelez, including MIHN’s $750 million term loan due Oct. 28, 2021, and Mondelez commercial paper.

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