Mondelez International prices tender offer for $1.5 billion of notes

By Susanna Moon

Chicago, Dec. 4 - Mondelez International, Inc. said it priced the cash tender offer for up to $1.5 billion of four series of its notes.

As previously announced, the tender offer cap is as follows, with the notes are listed in order of priority acceptance:

• $500 million for the $1.5 billion of 6.5% notes due 2017;

• $500 million for the $1,403,875,000 of 6.125% notes due 2018;

• $300 million for the $811,457,000 of 6.125% notes due 2018; and

• $300 million for the $2,489,960,000 of 5.375% notes due 2020.

The total purchase price for each series of notes was set using a fixed spread over the yield to maturity of a reference security as follows:

• $1,184.79 for the 6.5% notes with a reference yield of 0.87% and a tender offer yield of 1.32%, using the 0.5% Treasury note due July 31, 2017 plus 45 basis points;

• $1,179.31 for the $1.4 billion of 6.125% notes with a reference yield of 1.077% and a tender offer yield of 1.627%, using the 0.875% Treasury note due Jan. 31, 2018 plus 55 bps;

• $1,192.90 for the $811 million of 6.125% notes with a reference yield of 1.273% and a tender offer yield of 1.823%, using the 1.375% Treasury note due July 31, 2018 plus 55 bps; and

• $1,147.56 for the $2.5 billion of 5.375% notes with a reference yield of 1.855% and a tender offer yield of 2.755%, using the 1.375% Treasury note due Jan. 31, 2020 plus 90 bps.

The total purchase price includes an early tender premium of $30.00 for each $1,000 principal amount of notes tendered by 5 p.m. ET on Dec. 3, the early tender date.

The tender offer will end at 11:59 p.m. ET on Dec. 17. The offer began on Nov. 19.

The company also will pay accrued interest to but excluding the settlement date of Dec. 11 for early tendered notes and Dec. 18 for remaining tenders.

Tendered notes may no longer be withdrawn, as of the early tender deadline.

The tender offer is not conditioned on any minimum amount of notes being tendered.

The company plans to sell new debt securities concurrently with the tender offer, with proceeds used to finance the purchase of the tendered notes.

BNP Paribas Securities Corp. (888 210-4358 or 212 841-3059 collect), BofA Merrill Lynch (888292-0070 or 980 387-3907 collect), Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147 collect) and Deutsche Bank Securities Inc. (866 627-0391 or 212 250-2955 collect) are the lead dealer managers. Global Bondholder Services Corp. (banks and brokers, 212 430-3774; all others 866 924-2200) is the tender and information agent.

Mondelez is a snack company based in Deerfield, Ill.

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