By Cristal Cody
Tupelo, Miss., Feb. 26 - PepsiCo. Inc. raised $2.5 billion in a three-tranche offering of senior notes (Aa3/A-/A), according to a FWP filing with the Securities and Exchange Commission.
In the first tranche, the company sold $625 million of three-year floating-rate notes at par to yield Libor plus 21 basis points.
PepsiCo sold $625 million of 0.7% three-year fixed-rate notes at 99.965 to yield 0.712%, or a spread of 35 bps over Treasuries.
In the last tranche, the company sold $1.25 billion of 2.75% 10-year notes at 99.904 to yield 2.761%, or a spread of 87 bps over Treasuries.
BNP Paribas Securities Corp., BofA Merrill Lynch and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes, including repayment of commercial paper.
The food and beverage company was last in the U.S. bond market with a $2.5 billion sale in three tranches on Aug. 8, 2012.
PepsiCo is based in Purchase, N.Y.
| Issuer: | PepsiCo, Inc.
|
| Amount: | $2.5 billion
|
| Securities: | Senior notes
|
| Bookrunners: | BNP Paribas Securities Corp., BofA Merrill Lynch, J.P. Morgan Securities LLC
|
| Co-managers: | Loop Capital Markets LLC, Mizuho Securities (USA) Inc., US Bancorp Investments, Inc.
|
| Pricing date: | Feb. 25
|
| Settlement date: | Feb. 28
|
| Ratings: | Moody's: Aa3
|
| Standard & Poor's: A-
|
| Fitch: A
|
|
|
| Three-year floaters
|
| Amount: | $625 million
|
| Securities: | Floating-rate senior notes
|
| Maturity: | Feb. 26, 2016
|
| Coupon: | Libor plus 21 bps
|
| Price: | Par
|
| Yield: | Libor plus 21 bps
|
| Call feature: | Non-callable
|
|
|
| Three-year fixed-rate notes
|
| Amount: | $625 million
|
| Securities: | Senior fixed-rate notes
|
| Maturity: | Feb. 26, 2016
|
| Coupon: | 0.7%
|
| Price: | 99.965
|
| Yield: | 0.712%
|
| Spread: | 35 bps over Treasuries
|
| Call feature: | Make-whole call at Treasuries plus 5 bps
|
|
|
| 10-year notes
|
| Amount: | $1.25 billion
|
| Securities: | Senior fixed-rate notes
|
| Maturity: | March 1, 2023
|
| Coupon: | 2.75%
|
| Price: | 99.904
|
| Yield: | 2.761%
|
| Spread: | 87 bps over Treasuries
|
| Call feature: | Make-whole call at Treasuries plus 15 bps
|
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