8-KFinancial EventsExhibits & Filings

COCA COLA CO 8-K Report, Financial Obligation (Aug 8, 2011)

Filed August 8, 2011For Securities:KO

Summary

On August 8, 2011, The Coca-Cola Company (KO) filed an 8-K report announcing its intention to issue and sell $2 billion in aggregate principal amount of Senior Notes. This issuance includes $1 billion of 1.80% Senior Notes due 2016 and $1 billion of 3.30% Senior Notes due 2021. The company expects to complete this sale on August 10, 2011. These notes are being offered to qualified institutional buyers and non-U.S. persons under specific securities regulations. The proceeds from this debt offering will likely be used for general corporate purposes, providing the company with additional liquidity. The issuance ranks as general unsecured obligations of Coca-Cola and is subject to the terms outlined in the company's existing Indenture and a new Registration Rights Agreement, which ensures the notes will eventually be registered or an exchange offer will be made.

Key Highlights

  • 1Coca-Cola Co. announced the issuance of $2 billion in Senior Notes, split equally between 1.80% Notes due 2016 and 3.30% Notes due 2021.
  • 2The debt offering is expected to close on August 10, 2011.
  • 3The notes are being sold to qualified institutional buyers and non-U.S. persons under Rule 144A and Regulation S.
  • 4The notes are unsecured obligations of the company, ranking equally with other unsubordinated indebtedness.
  • 5A Registration Rights Agreement is in place, requiring Coca-Cola to register the notes or offer an exchange for registered notes.
  • 6Failure to meet registration obligations under the agreement could result in additional interest payments to noteholders.

Frequently Asked Questions

The Coca-Cola Company is issuing a total of $2 billion in aggregate principal amount of Senior Notes.

The issuance consists of $1 billion of 1.80% Senior Notes due September 1, 2016, and $1 billion of 3.30% Senior Notes due September 1, 2021.

The notes are being offered and sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-U.S. persons in reliance on Regulation S.

The Registration Rights Agreement obligates The Coca-Cola Company to use commercially reasonable efforts to file a registration statement for an exchange offer of these notes for substantially similar registered notes, or to register the resale of the notes. This is to ensure that investors can potentially trade these notes more freely in the public market or are compensated if registration obligations are not met.