Summary
Mondelēz International, Inc. (MDLZ) announced through its wholly-owned Dutch subsidiary, Mondelez International Holdings Netherlands B.V., the issuance of €1.95 billion (approximately $2.3 billion based on Sept 2021 exchange rates) in senior unsecured notes. These notes consist of three tranches: €650 million of 0.250% notes due 2029, €650 million of 0.625% notes due 2032, and €700 million of 1.250% notes due 2041. The issuance was conducted under an exemption from registration requirements of the Securities Act of 1933. The net proceeds from this offering are intended to finance or refinance eligible projects in alignment with the Company's Green Bond Framework. This indicates a strategic focus on sustainability initiatives. Pending full allocation, the proceeds will be managed according to the company's liquidity practices, which may include refinancing existing debt. The notes are guaranteed by the parent company, Mondelēz International, Inc., and are subject to customary covenants and change of control provisions.
Key Highlights
- 1Issuance of €1.95 billion in senior unsecured notes by a Dutch subsidiary.
- 2Notes are structured into three tranches with varying interest rates and maturity dates: 0.250% (2029), 0.625% (2032), and 1.250% (2041).
- 3Proceeds earmarked for financing or refinancing eligible projects under the company's Green Bond Framework, signaling a commitment to sustainability.
- 4The issuance is exempt from U.S. Securities Act registration requirements.
- 5The parent company, Mondelēz International, Inc., provides full and unconditional senior unsecured guarantees for the notes.
- 6Customary covenants are included, restricting debt secured by liens and certain sale and leaseback transactions.
- 7A change of control event coupled with a rating downgrade below investment grade triggers a mandatory offer to repurchase the notes at 101% of principal plus accrued interest.