Mondelez to settle early tenders for $1.56 billion of five note series

By Susanna Moon

Chicago, Jan. 24 - Mondelez International, Inc. said it lifted the maximum amount in the cash tender offer for five series of notes to $1,560,004,000 from $1 billion after tallying the early tender results as of 5 p.m. ET on Jan. 23.

The company also increased the purchase amount for the priority 1 notes to $534,883,000 from $500 million, according to a company press release.

All other terms of the tender offer remain unchanged.

Mondelez said it expects to accept for purchase notes tendered by the early tender deadline up to the revised cap on Jan. 27.

The tender offer is set to end at 11:59 ET on Feb. 6, but the company said it will accept no more tendered notes in the offer. The offer began Jan. 9.

Tendered notes no longer may be withdrawn, as of the early tender deadline.

Listed in order of priority acceptance, the breakdown for the tendered notes is as follows:

• $1,741,526,000, or 78.71%, of the $2,212,494,000 6.5% notes due 2040 with a tender sub-cap of $534,883,000;

• $393,223,000, or 69.66%, of the $564,488,000 7% notes due 2037;

• $381,532,000, or 53.77%, of the $709,508,000 6.875% notes due 2038;

• $250,366,000, or 48.53%, of the $515,948,000 6.875% notes due 2039; and

• $137.18 million, or 23.69%, of the $578,973,000 6.5% notes due 2031.

Pricing, other details

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

• 100 basis points for the 6.5% notes due 2040;

• 110 bps for the 7% notes due 2037;

• 108 bps for the 6.875% notes due 2038;

• 108 bps for the 6.875% notes due 2039; and

• 87 bps for the 6.5% notes due 2031.

The total purchase price includes $30 per $1,000 of notes tendered by the early tender date.

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

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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