Mondelez International tenders for $1 billion of five series of notes

By Susanna Moon

Chicago, Jan. 9 - Mondelez International, Inc. began a cash tender offer for up to $1 billion of five series of notes, according to a company press release and an 8-K filing with the Securities and Exchange Commission.

Listed in order of priority acceptance, the notes covered by the offer are as follows:

• $2,212,494,000 6.5% notes due 2040 with a tender cap of $500 million and pricing to be based on a fixed spread of 100 basis points;

• $564,488,000 7% notes due 2037 with pricing using a fixed spread of 110 bps;

• $709,508,000 6.875% notes due 2038 with pricing using a fixed spread of 108 bps;

• $515,948,000 6.875% notes due 2039 with pricing using a fixed spread of 108 bps; and

• $578,973,000 6.5% notes due 2031 with pricing using a fixed spread of 87 bps.

Pricing for each $1,000 principal amount will be set using a fixed spread over the yield to maturity of the 3.625% U.S. Treasury note due Aug. 15, 2043.

The total purchase price will includes $30 per $1,000 of notes tendered by 5 p.m. ET on Jan. 23, the early tender date.

Holders will also receive accrued interest to but excluding the settlement date.

The tender offer will end at 11:59 p.m. ET on Feb. 6.

Tendered notes may be withdrawn by the early tender deadline.

Barclays (800 438-3242 or 212 528-7581 collect), RBS Securities Inc. (877 297-9832 or 203 897-6145 collect), Citigroup Global Markets Inc., Goldman, Sachs & Co., HSBC Securities (USA) Inc. and UBS Securities LLC are the lead dealer managers. Global Bondholder Services Corp. is the tender and information agent (banks and brokers, 212 430-3774, all others 866 924-2200).

Mondelez, formerly Kraft Foods Inc., is a snack company based in Deerfield, Ill.

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