By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., Feb. 13 – PepsiCo, Inc.’s wholly owned subsidiary, PepsiCo Singapore Financing I Pte. Ltd., priced $1.75 billion of senior notes in four tranches on Monday, including one floating-rate tranche (A1/A+), according to a market source and an FWP filed with the Securities and Exchange Commission.
The notes will be guaranteed by the parent company.
The $300 million floating-rate tranche of notes due Feb. 16, 2027 priced at par. They bear interest at SOFR plus 56 basis points, subject to a 0% floor.
The $550 million of 4.65% notes due 2027 priced at 99.967 to yield 4.662%, or Treasuries plus 40 bps, after price talk in the Treasuries plus 55 bps area.
PepsiCo sold a $450 million tranche of 4.55% notes due 2029 at 99.854 to yield 4.583%, or 45 bps above Treasuries. Price talk was in the Treasuries plus 65 bps area.
Finally, the company priced $450 million of 4.7% 10-year notes at 99.803 to yield 4.725%, or Treasuries plus 55 bps, after price talk in the Treasuries plus 75 bps area.
The three fixed-rate tranches feature a make-whole call followed by a par call. Before the last month until maturity, the 2027 and 2029 notes are callable at a make-whole premium of Treasuries plus 10 bps and after at par. The 2034 notes are also callable at the same margin, then transition to a par call for the final three months.
Deutsche Bank AG, Singapore Branch, Goldman Sachs (Singapore) Pte., Mizuho Securities (Singapore) Pte. and Morgan Stanley Asia (Singapore) Pte. are the bookrunners.
Proceeds will be used for general corporate purposes, including the repayment of commercial paper.
PepsiCo is a global food and beverage company based in Purchase, N.Y.
| Issuer: | PepsiCo Singapore Financing I Pte. Ltd.
|
| Guarantor: | PepsiCo, Inc.
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| Amount: | $1.75 billion
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| Issue: | Notes
|
| Bookrunners: | Deutsche Bank AG, Singapore Branch, Goldman Sachs (Singapore) Pte., Mizuho Securities (Singapore) Pte. and Morgan Stanley Asia (Singapore) Pte.
|
| Senior co-managers: | Barclays, BBVA Securities Inc., BNP Paribas Securities Corp., HSBC Securities (USA) Inc. and TD Securities (USA) LLC
|
| Co-managers: | RBC Capital Markets, LLC, SG Americas Securities, LLC and U.S. Bancorp Investments, Inc.
|
| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuer: | Davis Polk & Wardwell LLP, Womble Bond Dickinson (US) LLP and WongPartnership LLP
|
| Counsel to underwriters: | Jones Day
|
| Trade date: | Feb. 12
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| Settlement date: | Feb. 16
|
| Ratings: | Moody’s: A1
|
| S&P: A+
|
|
|
| Floaters due 2027
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| Amount: | $300 million
|
| Maturity: | Feb. 16, 2027
|
| Coupon: | SOFR plus 56 bps
|
| Price: | Par
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| Yield: | SOFR plus 56 bps
|
| Price talk: | SOFR plus equivalent
|
| Cusip: | 713466AE0
|
|
|
| 2027 notes
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| Amount: | $550 million
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| Maturity: | Feb. 16, 2027
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| Coupon: | 4.65%
|
| Price: | 99.967
|
| Yield: | 4.662%
|
| Spread: | Treasuries plus 40 bps
|
| Call features: | Make-whole call at Treasuries plus 10 bps before Jan. 16, 2027; after at par
|
| Price talk: | Treasuries plus 55 bps area
|
| Cusip: | 713466AA8
|
|
|
| 2029 notes
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| Amount: | $450 million
|
| Maturity: | Feb. 16, 2029
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| Coupon: | 4.55%
|
| Price: | 99.854
|
| Yield: | 4.583%
|
| Spread: | Treasuries plus 45 bps
|
| Call features: | Make-whole call at Treasuries plus 10 bps before Jan. 16, 2029; after at par
|
| Price talk: | Treasuries plus 65 bps area
|
| Cusip: | 713466AB6
|
|
|
| 2034 notes
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| Amount: | $450 million
|
| Maturity: | Feb. 16, 2034
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| Coupon: | 4.7%
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| Price: | 99.803
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| Yield: | 4.725%
|
| Spread: | Treasuries plus 55 bps
|
| Call features: | Make-whole call at Treasuries plus 10 bps before Nov. 16, 2033; after at par
|
| Price talk: | Treasuries plus 75 bps area
|
| Cusip: | 713466AD2
|
|
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