Summary
The Coca-Cola Company (KO) announced on March 9, 2021, the successful completion of a public offering of new euro-denominated notes totaling €2.05 billion. These notes comprise €700 million of 0.125% Notes due 2029, €650 million of 0.500% Notes due 2033, and €650 million of 1.000% Notes due 2041. This issuance was made under the company's existing shelf registration statement. The primary purpose of this debt issuance is to refinance existing debt. Specifically, Coca-Cola intends to use the net proceeds to purchase outstanding euro-denominated notes through tender offers, cover associated costs, and redeem any remaining tendered notes. Additionally, the proceeds will be used to repay the company's euro-denominated Floating Rate Notes due 2021. This move indicates a proactive approach to managing its debt structure and potentially lowering its borrowing costs.
Key Highlights
- 1Completed a public offering of €2.05 billion in euro-denominated notes.
- 2Issued three series of notes with varying maturities and coupon rates: 0.125% (2029), 0.500% (2033), and 1.000% (2041).
- 3Intends to use proceeds to purchase outstanding euro-denominated notes via tender offers.
- 4Will also use proceeds to redeem certain remaining outstanding notes.
- 5Repaying euro-denominated Floating Rate Notes due 2021 with the new proceeds.
- 6The offering was conducted under an existing shelf registration statement filed in 2019.
- 7The transaction aims to optimize the company's debt maturity profile and interest expense.