By Aleesia Forni
New York, Feb. 19 – PepsiCo Inc. priced $2.5 billion of senior notes (A1/A/A) in four tranches on Friday, according to an informed source.
A $600 million 1.5% tranche of three-year notes sold at 99.971 to yield 1.51%, or Treasuries plus 60 basis points.
The issue sold at the tightest side of guidance set in the Treasuries plus 62.5 bps area and inside initial talk set in the Treasuries plus 80 bps area.
And $400 million of three-year floaters sold at par to yield Libor plus 59 bps.
There was $750 million of 2.85% 10-year bonds sold with a 110 bps spread over Treasuries. Pricing was at 99.922 to yield 2.859%.
Guidance was in the Treasuries plus 115 bps area, and the notes were initially talked in the Treasuries plus 130 bps area.
The company also sold a $750 million tap of its existing 4.45% bonds due April 14, 2046 at 105.791 to yield 4.11%, or Treasuries plus 150 bps.
The tranche sold at the tight end of guidance, which was set in the Treasuries plus 155 bps area, having firmed from the Treasuries plus 165 bps area.
The bookrunners were BNP Paribas Securities Corp., J.P. Morgan Securities LLC and Morgan Stanley & Co. 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: | $2.5 billion
|
| Bookrunners: | BNP Paribas Securities Corp., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
|
| Trade date: | Feb. 19
|
| Settlement date: | Feb. 24
|
| Ratings: | Moody’s: A1
|
| Standard & Poor’s: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $600 million
|
| Maturity: | Feb. 22, 2019
|
| Coupon: | 1.5%
|
| Price: | 99.971
|
| Yield: | 1.51%
|
| Spread: | Treasuries plus 60 bps area
|
| Price guidance: | Treasuries plus 62.5 bps area (+/- 2.5 bps), tightened from Treasuries plus 80 bps area
|
|
|
| Three-year floaters
|
| Amount: | $400 million
|
| Maturity: | Feb. 22, 2019
|
| Coupon: | Libor plus 59 bps
|
| Price: | Par
|
| Yield: | Libor plus 59 bps
|
| Price guidance: | Libor equivalent to three-year fixed-rate notes
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | Feb. 24, 2026
|
| Coupon: | 2.85%
|
| Price: | 99.922
|
| Yield: | 2.859%
|
| Spread: | Treasuries plus 110 bps
|
| Price guidance: | Treasuries plus 115 bps area (+/- 5 bps), tightened from Treasuries plus 130 bps area
|
|
|
| Tap of notes due 2046
|
| Amount: | $750 million
|
| Maturity: | April 14, 2046
|
| Coupon: | 4.45%
|
| Price: | 105.791
|
| Yield: | 4.11%
|
| Spread: | Treasuries plus 150 bps
|
| Price guidance: | Treasuries plus 155 bps area (+/- 5 bps), tightened from Treasuries plus 165 bps area
|
| Total issue size: | $1.5 billion, including $750 million priced on Oct. 8, 2015
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
