By Andrea Heisinger
New York, Jan. 11 - PepsiCo, Inc. priced a benchmark, upsized $4.25 billion of notes (Aa2/A+/) in four tranches on Monday, an informed source said.
The size was increased from $4 billion, with $250 million added to the tranche of floating-rate notes.
There was about $7.5 billion total on the books, the source said. The tranche of floaters was upsized because there were the books to support it, and the company was "happy to get another $250 million done," he said.
The $1.25 billion of floaters due in July 2011 priced at par to yield three-month Libor plus 3 basis points. They are non-callable.
A $1 billion tranche of 3.1% five-year notes sold at 99.899 to yield 3.122%, or Treasuries plus 57 bps. The tranche features a make-whole call at Treasuries plus 10 bps.
The $1 billion of 4.5% 10-year notes priced at 99.665 to yield 4.542%, or Treasuries plus 73 bps. There is a make-whole call of Treasuries plus 15 bps.
The final tranche of $1 billion in 5.5% 30-year bonds priced at 98.927 to yield 5.574%, or Treasuries plus 85 bps. This tranche also features a make-whole call of Treasuries plus 15 bps.
Interest was "fairly evenly split" among the four tranches, the informed source said, adding that it was "slightly weighted toward the 30-year."
Bank of America Merrill Lynch, Citigroup Global Markets Inc. and RBS Securities Inc. were active bookrunners. Passive bookrunners were BNP Paribas Securities Corp., HSBC Securities and UBS Investment Bank.
Proceeds will be used to finance a portion of the purchase price of Pepsi Bottling Group, Inc. and PepsiAmericas, Inc.
The beverage and food company is based in Purchase, N.Y.
| Issuer: | PepsiCo, Inc.
|
| Issue: | Senior notes
|
| Amount: | $4.25 billion, increased from $4 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., RBS Securities Inc. (active), BNP Paribas Securities Corp., HSBC Securities, UBS Investment Bank (passive)
|
| Trade date: | Jan. 11
|
| Settlement date: | Jan. 14
|
| Ratings: | Moody's: Aa2
|
| Standard & Poor's: A+
|
|
|
| 18-month floaters
|
| Amount: | $1.25 billion, increased from $1 billion
|
| Issue: | Floating-rate notes
|
| Maturity: | July 15, 2011
|
| Coupon: | Three-month Libor plus 3 bps
|
| Price: | Par
|
| Yield: | Three-month Libor plus 3 bps
|
| Call: | Non-callable
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | July 15, 2015
|
| Coupon: | 3.1%
|
| Price: | 99.899
|
| Yield: | 3.122%
|
| Spread: | Treasuries plus 57 bps
|
| Call: | Make-whole at Treasuries plus 10 bps
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | Jan. 15, 2020
|
| Coupon: | 4.5%
|
| Price: | 99.665
|
| Yield: | 4.542%
|
| Spread: | Treasuries plus 73 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
|
|
| 30-year bonds
|
| Amount: | $1 billion
|
| Maturity: | Jan. 15, 2040
|
| Coupon: | 5.5%
|
| Price: | 98.927
|
| Yield: | 5.574%
|
| Spread: | Treasuries plus 85 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
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