Published on 10/4/2016 in the Prospect News Investment Grade Daily.
New Issue: PepsiCo sells $4.5 billion fixed-, floating-rate notes in six tranches
By Devika Patel
Knoxville, Tenn., Oct. 4 – PepsiCo Inc. priced $4.5 billion of senior notes (A1/A) in six tranches, according to an FWP filed Tuesday with the Securities and Exchange Commission.
A $250 million tranche of three-year floaters sold at par to yield Libor plus 27 bps.
And $250 million of five-year floaters sold at par to yield Libor plus 53 bps.
There was $750 million of 1.35% three-year bonds sold with a 45 bps spread over Treasuries. Pricing was at 99.985 to yield 1.355%.
The company sold $750 million of 1.7% five-year bonds with a 55 bps spread over Treasuries. Pricing was at 99.866 to yield 1.728%.
PepsiCo priced $1 billion of 2.375% 10-year bonds with a 75 bps spread over Treasuries. Pricing was at 99.982 to yield 2.377%.
The company also sold $1.5 billion of 3.45% 30-year bonds with a 115 bps spread over Treasuries. Pricing was at 99.186 to yield 3.494%.
The bookrunners were Citigroup Global Markets Inc., Goldman Sachs & Co., Merrill Lynch, Pierce, Fenner & Smith Inc. and Mizuho Securities USA Inc.
Proceeds will be used for general corporate purposes, including the repayment of commercial paper and to redeem $1.5 billion of 7.9% senior notes due Nov. 1, 2018 and $750 million of 5.125% senior notes due Jan. 15, 2019.
PepsiCo is a Purchase, N.Y.-based food and beverage company.
| Issuer: | PepsiCo Inc.
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| Issue: | Senior notes
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| Amount: | $4.5 billion
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| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co., Merrill Lynch, Pierce, Fenner & Smith Inc. and Mizuho Securities USA Inc.
|
| Co-managers: | BBVA Securities Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., ANZ Securities, Inc., BNY Mellon Capital Markets LLC, Loop Capital Markets LLC, Mischler Financial Group, Inc., RBC Capital Markets Corp., SG Americas Securities LLC, TD Securities (USA) LLC and U.S. Bancorp Investments Inc.
|
| Trade date: | Oct. 3
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| Settlement date: | Oct. 6
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| Ratings: | Moody’s: A1
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| Standard & Poor’s: A
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| Distribution: | SEC registered
|
|
|
| Three-year floaters
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| Amount: | $250 million
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| Maturity: | Oct. 4, 2019
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| Coupon: | Libor plus 27 bps
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| Price: | Par
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| Yield: | Libor plus 27 bps
|
|
|
| Five-year floaters
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| Amount: | $250 million
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| Maturity: | Oct. 6, 2021
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| Coupon: | Libor plus 53 bps
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| Price: | Par
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| Yield: | Libor plus 53 bps
|
|
|
| Three-year notes
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| Amount: | $750 million
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| Maturity: | Oct. 4, 2019
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| Coupon: | 1.35%
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| Price: | 99.985
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| Yield: | 1.355%
|
| Spread: | Treasuries plus 45 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps
|
|
|
| Five-year notes
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| Amount: | $750 million
|
| Maturity: | Oct. 6, 2021
|
| Coupon: | 1.7%
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| Price: | 99.866
|
| Yield: | 1.728%
|
| Spread: | Treasuries plus 55 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps, at par from Sept. 6, 2021
|
|
|
| Ten-year notes
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| Amount: | $1 billion
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| Maturity: | Oct. 6, 2026
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| Coupon: | 2.375%
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| Price: | 99.982
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| Yield: | 2.377%
|
| Spread: | Treasuries plus 75 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps, at par from July 6, 2026
|
|
|
| Thirty-year notes
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| Amount: | $1.5 billion
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| Maturity: | Oct. 6, 2046
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| Coupon: | 3.45%
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| Price: | 99.186
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| Yield: | 3.494%
|
| Spread: | Treasuries plus 115 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps, at par from April 6, 2046
|
|
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|
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