By Andrea Heisinger
New York, Oct. 19 - PepsiCo, Inc. sold $2.25 billion of senior notes (Aa3/A-/A+) on Monday in three parts, a market source said.
The $500 million of 0.875% three-year notes priced at 99.956 to yield 0.89% with a spread of 35 basis points over Treasuries. This was at the tight end of price talk in the range of 35 bps to 38 bps.
The three-year notes have a make-whole call at Treasuries plus 5 bps.
A second tranche of $1 billion in 3.125% 10-year notes priced at 99.167 to yield 3.223% with a Treasuries plus 75 bps spread. The notes sold at the tight end of price talk of between 75 bps and 78 bps.
The 10-year notes have a make-whole call of 10 bps over Treasuries.
The final tranche was $750 million in 4.875% 30-year bonds that sold at 99.811 to yield 4.887%, or 97 bps over Treasuries. This was in line with guidance in the 100 bps area.
The 30-year bonds have a make-whole call at 15 bps over Treasuries.
BNP Paribas Securities Corp., J.P. Morgan Securities LLC and UBS Securities Inc. were the bookrunners.
Proceeds are going to fund the pending purchase offer of up to $500 million of 7.9% senior notes due 2018 and for general corporate purposes.
PepsiCo last sold bonds in a $4.25 billion sale in four tranches on Jan. 11. The 4.5% 10-year notes in that offering priced at 73 bps over Treasuries and the 5.5% 30-year bonds at Treasuries plus 85 bps.
The global food and beverage company is based in Purchase, N.Y.
| Issuer: | PepsiCo, Inc.
|
| Issue: | Senior notes
|
| Amount: | $2.25 billion
|
| Bookrunners: | BNP Paribas Securities Corp., J.P. Morgan Securities LLC, UBS Securities Inc.
|
| Trade date: | Oct. 19
|
| Settlement date: | Oct. 26
|
| Ratings: | Moody's: Aa3
|
| Standard & Poor's: A-
|
| Fitch: A+
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 25, 2013
|
| Coupon: | 0.875%
|
| Price: | 99.956
|
| Yield: | 0.89%
|
| Spread: | Treasuries plus 35 bps
|
| Call: | Make-whole at Treasuries plus 5 bps
|
| Price talk: | 35 to 38 bps
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | Nov. 1, 2020
|
| Coupon: | 3.125%
|
| Price: | 99.167
|
| Yield: | 3.223%
|
| Spread: | Treasuries plus 75 bps
|
| Call: | Make-whole at Treasuries plus 10 bps
|
| Price talk: | 75 to 78 bps
|
|
|
| 30-year bonds
|
| Amount: | $750 million
|
| Maturity: | Nov. 1, 2040
|
| Coupon: | 4.875%
|
| Price: | 99.811
|
| Yield: | 4.887%
|
| Spread: | Treasuries plus 97 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | 100 bps area
|
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