Published on 7/26/2019 in the Prospect News Investment Grade Daily.
New Issue: PepsiCo details $2 billion senior notes due 2029, 2049
By Devika Patel
Knoxville, Tenn., July 26 – PepsiCo Inc. offered further details about a $2 billion sale of senior notes (A1/A+) that priced in two tranches on Thursday, according to an FWP filed with the Securities and Exchange Commission.
The company sold $1 billion of 2.65% 10-year notes at a spread of 58 bps over Treasuries. These notes priced at 99.703 to yield 2.659%.
A $1 billion tranche of 3.375% 30-year bonds priced with a Treasuries plus 80 bps spread. These notes priced at 99.271 to yield 3.414%.
The notes priced on the tight side of guidance.
J.P. Morgan Securities LLC and Citigroup Global Markets Inc. were the bookrunners.
The Purchase, N.Y.-based food and beverage company plans to use the proceeds for general corporate purposes, including to repay commercial paper.
| Issuer: | PepsiCo Inc.
|
| Amount: | $2 billion
|
| Description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC and Citigroup Global Markets Inc.
|
| Senior co-managers: | Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, Barclays and TD Securities (USA) LLC
|
| Co-managers: | CastleOak Securities LP, Loop Capital Markets LLC and Williams Capital Group LP
|
| Trade date: | July 25
|
| Settlement date: | July 29
|
| Ratings: | Moody’s: A1
|
| S&P: A+
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | July 29, 2029
|
| Coupon: | 2.625%
|
| Price: | 99.703
|
| Yield: | 2.659%
|
| Spread: | Treasuries plus 58 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps until April 29, 2029, then a par call
|
| Price guidance: | Treasuries plus 60 bps area, plus or minus 2 bps; initial talk at Treasuries plus 75 bps area
|
|
|
| 30-year notes
|
| Amount: | $1 billion
|
| Maturity: | July 29, 2049
|
| Coupon: | 3.375%
|
| Price: | 99.271
|
| Yield: | 3.414%
|
| Spread: | Treasuries plus 80 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until Jan. 29, 2049, then a par call
|
| Price guidance: | Treasuries plus 82 bps area, plus or minus 2 bps; initial talk at Treasuries plus 95 bps area
|
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