PepsiCo to repurchase all $4.1 billion tendered notes, prices offer

By Wendy Van Sickle

Columbus, Ohio, Oct. 21 – PepsiCo, Inc. announced the pricing and early results of its cash tender offer for up to $4 billion of notes from 15 series, according to two press releases.

The company received tenders for around $4.1 billion of notes by the early deadline at 5 p.m. ET on Oct. 20, more than the maximum amount, and announced that it will increase the cap to accept all of the notes tendered early.

Specifically, the company received tenders for the following amounts of notes:

• $7,575,000 tendered of the $105.7 million outstanding 5.5% senior notes due 2035 (Cusip: 713448EH7), priced using the 1.25% U.S. Treasury due Aug. 15, 2031 plus 80 basis points for a total consideration of $1,348.05;

• $1,127,000 tendered of the $1.1 million outstanding 5.5% senior notes due 2035, series A (Cusips: 713448ED6; U71344BF8), priced using the 1.25% U.S. Treasury due Aug. 15, 2031 plus 80 bps for a total consideration of $1,348.05;

• $25,695,000 tendered of the $592.3 million outstanding 5.5% senior notes due 2040 (Cusip: 713448BP2), priced using the 1.75% U.S. Treasury due Aug. 15, 2041 plus 55 bps for a total consideration of $1,406.36;

• $29.92 million tendered of the $340.3 million outstanding 4.875% senior notes due 2040 (Cusip: 713448BS6), priced using the 1.75% U.S. Treasury due Aug. 15, 2041 plus 55 bps for a total consideration of $1,327.31;

• $203,129,000 tendered of the $500 million 4.6% senior notes due 2045 (Cusip: 713448CZ9), priced using the 2.375% U.S. Treasury due May 15, 2051 plus 67 bps for a total consideration of $1,304.41;

• $532,313,000 tendered of the $1.5 billion outstanding 4.45% senior notes due 2046 (Cusip: 713448DD7), priced using the 2.375% U.S. Treasury due May 15, 2051 plus 68 bps for a total consideration of $1,283.20;

• $189.78 million tendered of the $500 million outstanding 4.25% senior notes due 2044 (Cusip: 713448CQ9), priced using the 1.75% U.S. Treasury due Aug. 15, 2041 plus 73 bps for a total consideration of $1,231.48;

• $260.64 million of the $750 million outstanding 4% senior notes due 2042 (Cusip: 713448BZ0), priced using the 1.75% U.S. Treasury due Aug. 15, 2041 plus 62 bps for a total consideration of $1,195.78;

• $211,909,000 tendered of the $750 million outstanding 4% senior notes due 2047 (Cusip: 713448DV7), priced using the 2.375% U.S. Treasury due May 15, 2051 plus 68 bps for a total consideration of $1,211.38;

• $240,422,000 tendered of the $750 million outstanding 3.875% senior notes due 2060 (Cusip: 713448EV6), priced using the 2.375% U.S. Treasury due May 15, 2051 plus 76 bps for a total consideration of $1,224.07;

• $209.79 million tendered of the $600 million outstanding 3.6% senior notes due 2042 (Cusip: 713448CC0), priced using the 1.75% U.S. Treasury due Aug. 15, 2041 plus 65 bps for a total consideration of $1,130.70;

• $610,766,000 tendered of the $1.5 billion outstanding 3.625% senior notes due 2050 (Cusip: 713448EU8), priced using the 2.375% U.S. Treasury due May 15, 2051 plus 65 bps for a total consideration of $1,1861.75;

• $442,551,000 tendered of the $750 million outstanding 3.5% senior notes due 2040 (Cusip: 713448ET1), priced using the 1.75% U.S. Treasury due Aug. 15, 2041 plus 53 bps for a total consideration of $1,120.66;

• $621,683,000 tendered of the $1.5 billion outstanding 3.45% senior notes due 2046 (Cusip: 713448DP0), priced using the 2.375% U.S. Treasury due May 15, 2051 plus 65 bps for a total consideration of $1,116.95; and

• $507,902,000 tendered of the $1 billion outstanding 3.375% senior notes due 2049 (Cusip: 713448EM6), priced using the 2.375% U.S. Treasury due May 15, 2051 plus 65 bps for a total consideration of $1,111.74.

The considerations are based on $1,000-par notes, and they include an early $30 premium for noteholders who tendered by the early deadline.

Interest will also be paid to the applicable settlement date.

Pricing was determined at 9 a.m. ET on Oct. 21.

The withdrawal deadline has passed.

The offers technically expire at 11:59 p.m. ET on Nov. 3; however PepsiCo does not expect to accept any more notes for purchase after the early deadline.

The early settlement date is schedule for Oct. 25, with the final settlement date having been scheduled for Nov. 5.

The offers were subject to a financing condition. The company sold $3 billion of notes on Oct. 6 with settlement planned for Thursday.

BofA Securities (888 292-0070), Citigroup Global Markets Inc. (800 558-3745), Deutsche Bank Securities Inc. (866 627-0391) and J.P. Morgan Securities LLC (866 834-4666) are acting as the dealer managers.

Global Bondholder Services Corp. (866 924-2200, 212 430-3774, contact@gbsc-usa.com, https://gbsc-usa.com/registration/pepsi) is the tender agent.

PepsiCo is a global food and beverage company based in Purchase, N.Y.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.