What debt did Coca-Cola redeem?

Coca-Cola redeemed its 3.300% notes due 2021, 0.000% notes due 2021, 0.125% notes due 2022, and 1.125% notes due 2022.

What was the total principal amount of the notes redeemed?

The total principal amount redeemed was approximately $880.33 million for the 3.300% Notes and a combined €347.77 million + €401.98 million + €480.94 million for the Euro-denominated notes due 2021 and 2022.

At what price were the notes redeemed?

The notes were redeemed at 100% of their principal amount, plus any accrued and unpaid interest up to, but not including, the redemption date, and an applicable 'make-whole' premium.

Why would Coca-Cola redeem these notes early?

Companies typically redeem debt early when they can secure more favorable financing terms, have excess cash flow, or wish to restructure their debt obligations to better align with their financial strategy or current interest rate environment. The 'make-whole' premium indicates the company is likely paying to exit these agreements early, suggesting a potential benefit from this action.

KO 8-K SEC Disclosure — Oct 20, 2020

Summary

The Coca-Cola Company (KO) filed an 8-K on October 20, 2020, to report the redemption of several outstanding notes. Specifically, the company redeemed its 3.300% notes due 2021, its 0.000% notes due 2021, its 0.125% notes due 2022, and its 1.125% notes due 2022. This action signifies a proactive approach to managing its debt obligations and potentially optimizing its capital structure. Investors should note that the redemption was executed at 100% of the principal amount, plus accrued interest and a "make-whole" premium. While the exact financial impact of the make-whole premium is not detailed in this filing, such actions typically suggest that the company may have found more favorable financing options or is strategically adjusting its debt maturity profile. This move is part of the company's ongoing financial management and could reflect a response to prevailing interest rate environments or internal capital allocation strategies.

Key Highlights

1Coca-Cola redeemed all outstanding 3.300% notes due 2021 ($880.33 million principal amount).
2Coca-Cola redeemed all outstanding 0.000% notes due 2021 (€347.77 million principal amount).
3Coca-Cola redeemed all outstanding 0.125% notes due 2022 (€401.98 million principal amount).
4Coca-Cola redeemed all outstanding 1.125% notes due 2022 (€480.94 million principal amount).
5The redemption date for all specified notes was October 20, 2020.
6Notes were redeemed at 100% of principal, plus accrued interest and a 'make-whole' premium.

COCA COLA CO 8-K Report, Corporate Update (Oct 20, 2020)

Summary

Key Highlights

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