By Andrea Heisinger
New York, Feb. 29 - PepsiCo, Inc. sold $2.75 billion of senior notes (Aa3/A-/A) in three tranches on Wednesday, a market source said.
The $750 million of 0.75% three-year paper sold at 99.956 to yield 0.765% with a spread of Treasuries plus 35 basis points. This was in line with guidance in the 35 bps area.
There is a make-whole call at Treasuries plus 5 bps.
A second part was $1.25 billion of 2.75% 10-year notes priced at 99.826 to yield 2.77% with a spread of 80 bps over Treasuries. The notes priced at the low end of guidance in the range of 80 bps to 85 bps.
The tranche has a make-whole call at Treasuries plus 12.5 bps.
There was also a $750 million tranche of 4% 30-year bonds sold at 99.688 to yield 4.018% with a spread of Treasuries plus 95 bps. The bonds sold at the tight end of talk in the 95 bps to 100 bps range.
The bonds have a make-whole call at Treasuries plus 15 bps.
Bank of America Merrill Lynch, Goldman Sachs & Co. and J.P. Morgan Securities LLC were the bookrunners.
Co-managers were ANZ Securities Inc., Citigroup Global Markets Inc., HSBC Securities (USA) LLC, TD Securities (USA) LLC, Drexel Hamilton LLC and Muriel Siebert & Co. Inc.
Proceeds will be used for general corporate purposes, including commercial paper repayment.
PepsiCo last priced $1.25 billion of paper in two parts on Aug. 22, 2011. The 0.75% three-year notes from that offering sold at 57 bps over Treasuries while a 3% tranche of 10-year notes priced at 97 bps over Treasuries.
The snack food and soft drink company is based in Purchase, N.Y.
| Issuer: | PepsiCo, Inc.
|
| Issue: | Senior notes
|
| Amount: | $2.75 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities LLC
|
| Co-managers: | ANZ Securities Inc., Citigroup Global Markets Inc., HSBC Securities (USA) LLC, TD Securities (USA) LLC, Drexel Hamilton LLC, Muriel Siebert & Co. Inc.
|
| Trade date: | Feb. 29
|
| Settlement date: | March 5
|
| Ratings: | Moody's: Aa3
|
| Standard & Poor's: A-
|
| Fitch: A
|
|
|
| Three-year notes
|
| Amount: | $750 million
|
| Maturity: | March 5, 2015
|
| Coupon: | 0.75%
|
| Price: | 99.956
|
| Yield: | 0.765%
|
| Spread: | Treasuries plus 35 bps
|
| Call: | Make-whole at Treasuries plus 5 bps
|
| Price talk: | 35 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | March 5, 2022
|
| Coupon: | 2.75%
|
| Price: | 99.826
|
| Yield: | 2.77%
|
| Spread: | Treasuries plus 80 bps
|
| Call: | Make-whole at Treasuries plus 12.5 bps
|
| Price talk: | 80 bps to 85 bps
|
|
|
| 30-year bonds
|
| Amount: | $750 million
|
| Maturity: | March 5, 2042
|
| Coupon: | 4%
|
| Price: | 99.688
|
| Yield: | 4.018%
|
| Spread: | Treasuries plus 95 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | 95 bps to 100 bps
|
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