By Aleesia Forni
Virginia Beach, July 14 – PepsiCo Inc. priced on Tuesday $3.25 billion of senior notes (A1/A/A) in five tranches, an informed source said.
The sale included a $650 million 1.125% three-year note sold at 99.968 to yield 1.141%, or Treasuries plus 50 basis points.
Also priced was $600 million of three-year floating-rate notes at Libor plus 25 bps.
The company sold $800 million of 3.1% seven-year notes at 99.981 to yield 3.103%. The notes sold with a spread of 100 bps over Treasuries.
A $700 million tranche of 3.5% 10-year notes priced at 99.532 to yield 3.556%, or Treasuries plus 115 bps.
Finally, $500 million of 4.6% 30-year bonds sold with a spread of 140 bps over Treasuries. Pricing was at 99.645 to yield 4.622%.
All tranches sold at the tight end of price guidance.
The bookrunners for the offering are Goldman Sachs & Co., HSBC Securities and J.P. Morgan Securities LLC.
Proceeds will be used for general corporate purposes, including the repayment of commercial paper.
PepsiCo is a Purchase, N.Y.-based global food and beverage company.
| Issuer: | PepsiCo Inc.
|
| Issue: | Senior notes
|
| Amount: | $3.25 billion
|
| Bookrunners: | Goldman Sachs & Co., HSBC Securities and J.P. Morgan Securities LLC
|
| Trade date: | July 14
|
| Settlement date: | July 17
|
| Ratings: | Moody’s: A1
|
| Standard & Poor’s: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Two-year notes
|
| Amount: | $650 million
|
| Maturity: | July 17, 2017
|
| Coupon: | 1.125%
|
| Price: | 99.968
|
| Yield: | 1.141%
|
| Spread: | Treasuries plus 50 bps
|
| Price guidance: | Treasuries plus 50 bps to 55 bps, tightened from Treasuries plus 60 bps area
|
|
|
| Two-year floaters
|
| Amount: | $600 million
|
| Maturity: | July 17, 2017
|
| Coupon: | Libor plus 25 bps
|
| Price: | Par
|
| Yield: | Libor plus 25 bps
|
| Price guidance: | Libor plus 25 bps to 30 bps, adjusted from Libor equivalent to fixed-rate notes
|
|
|
| Seven-year notes
|
| Amount: | $800 million
|
| Maturity: | July 17, 2022
|
| Coupon: | 3.1%
|
| Price: | 99.981
|
| Yield: | 3.103%
|
| Spread: | Treasuries plus 100 bps
|
| Price guidance: | Treasuries plus 100 bps to 105 bps, tightened from Treasuries plus 105 bps to 110 bps
|
|
|
| 10-year notes
|
| Amount: | $700 million
|
| Maturity: | July 17, 2025
|
| Coupon: | 3.5%
|
| Price: | 99.532
|
| Yield: | 3.556%
|
| Spread: | Treasuries plus 115 bps
|
| Price guidance: | Treasuries plus 115 bps to 120 bps, tightened from Treasuries plus 120 bps to 125 bps
|
|
|
| 30-year bonds
|
| Amount: | $500 million
|
| Maturity: | July 17, 2045
|
| Coupon: | 4.6%
|
| Price: | 99.645
|
| Yield: | 4.622%
|
| Spread: | Treasuries plus 140 bps
|
| Price guidance: | Treasuries plus140 bps to 145 bps, tightened from Treasuries plus 150 bps area
|
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