By Devika Patel
Knoxville, Tenn., April 30 – PepsiCo Inc. offered further details about a $2 billion sale of senior notes (A1/A+) that priced in two tranches on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
A $1 billion tranche of 0.75% three-year notes priced at a spread of 57 bps over Treasuries. These notes priced at 99.802 to yield 0.817%.
The notes were talked to price in the Treasuries plus 80 bps area.
The company sold $1 billion of 1.625% 10-year notes at a spread of 105 bps over Treasuries. These notes priced at 99.569 to yield 1.672%.
Initial price talk on the 10-year tranche was in the 135 bps over Treasuries area.
Goldman Sachs & Co. LLC, Mizuho Securities USA Inc. and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds will be used for general corporate purposes, including repaying commercial paper.
PepsiCo also priced €2 billion of senior notes in two tranches on Wednesday.
The food and beverage company is based in Purchase, N.Y.
| Issuer: | PepsiCo Inc.
|
| Amount: | $2 billion
|
| Description: | Senior notes
|
| Bookrunners: | Goldman Sachs & Co. LLC, Mizuho Securities USA Inc. and Morgan Stanley & Co. LLC
|
| Senior co-managers: | BNP Paribas Securities Corp., Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc.
|
| Co-managers: | TD Securities (USA) LLC, Academy Securities, Inc. and Loop Capital Markets LLC
|
| Trade date: | April 29
|
| Settlement date: | May 1
|
| Ratings: | Moody’s: A1
|
| S&P: A+
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 1, 2023
|
| Coupon: | 0.75%
|
| Price: | 99.802
|
| Yield: | 0.817%
|
| Spread: | Treasuries plus 57 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps
|
| Price guidance: | Treasuries plus 80 bps area
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 1, 2030
|
| Coupon: | 1.625%
|
| Price: | 99.569
|
| Yield: | 1.672%
|
| Spread: | Treasuries plus 105 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps until Feb. 1, 2030, then a par call
|
| Price guidance: | Treasuries plus 135 bps area
|
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