8-KOther EventsExhibits & Filings

COCA COLA CO 8-K Report, Corporate Update (Jul 6, 2017)

Filed July 6, 2017For Securities:KO

Summary

On July 5, 2017, The Coca-Cola Company (KO) announced the completion of a cash tender offer and consent solicitation related to certain debt securities issued by its wholly owned subsidiary, Coca-Cola Refreshments USA, Inc. (CCR). The primary focus of this action was the 8.500% Debentures due February 1, 2022, for which the company received the necessary consents to implement amendments. This transaction involved entering into a Third Supplemental Indenture to modify the terms of the existing debt agreements. Crucially for investors, the company has provided full and unconditional guarantees for these 8.500% CCR Debentures. These guarantees are unsecured and unsubordinated, ranking equally with all other unsecured and unsubordinated debt of The Coca-Cola Company. This move aims to strengthen the credit profile of the subsidiary's debt by backing it with the parent company's creditworthiness, which is a significant development for holders of this specific debt instrument.

Key Highlights

  • 1The Coca-Cola Company completed a cash tender offer and consent solicitation for debt securities of its subsidiary, Coca-Cola Refreshments USA, Inc. (CCR).
  • 2The offer targeted two series of CCR's Extended CCR Notes, with specific focus on the 8.500% Debentures due February 1, 2022.
  • 3The company successfully obtained the requisite consents for the 8.500% CCR Debentures, enabling amendments to the debt's terms via a Third Supplemental Indenture.
  • 4The Coca-Cola Company has issued full and unconditional guarantees for the 8.500% CCR Debentures.
  • 5These guarantees are unsecured and unsubordinated, positioning them equally with other senior unsecured debt of The Coca-Cola Company.
  • 6The transaction involved amendments to the original Indenture dated July 30, 1991, through the Third Supplemental Indenture dated July 5, 2017.

Frequently Asked Questions

The main purpose was to report the completion of a cash tender offer and consent solicitation by The Coca-Cola Company for debt securities issued by its subsidiary, Coca-Cola Refreshments USA, Inc. It also announced the execution of a Third Supplemental Indenture and parent company guarantees related to these debt securities.

The offer and solicitation targeted two series of Extended CCR Notes issued by Coca-Cola Refreshments USA, Inc. (CCR). The company received the necessary consents for the 8.500% Debentures due February 1, 2022.

The Company Guarantees mean that The Coca-Cola Company is fully and unconditionally backing the 8.500% CCR Debentures. This enhances the credit standing of these debentures by making them obligations of the parent company, which are unsecured and unsubordinated, ranking equally with other senior unsecured debt of The Coca-Cola Company.

The filing indicates a 'cash tender offer and consent solicitation' was completed. While the full details of the tender offer's outcome (e.g., how much debt was repurchased) are not detailed in this specific 8-K, the solicitation of consents and subsequent amendment with parent guarantees suggest a restructuring or refinancing effort aimed at managing CCR's outstanding debt.