What is the purpose of this $1 billion note offering?

The primary purpose of the $1 billion note offering is for PepsiCo's general corporate purposes. Additionally, the proceeds will be used to repay certain short-term indebtedness, specifically $500 million that matured on May 15, 2007.

What are the key terms of the notes being offered?

The notes are senior unsecured notes with an aggregate principal amount of $1 billion. They will mature on May 15, 2012, and will bear an annual interest rate of 5.15%.

Where can investors find more information about this offering?

Investors can find more complete information by reviewing the Registration Statement, including the Prospectus and Prospectus Supplement, which have been filed with the SEC. These documents can be accessed for free on the SEC's website (www.sec.gov) or by contacting PepsiCo or the book runners mentioned in the filing.

Who is managing this debt offering?

The offering is being managed by Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities Inc., and UBS Securities LLC, who are acting as joint book runners.

PEP 8-K SEC Disclosure — May 17, 2007

Summary

PepsiCo, Inc. (PEP) has announced the offering of $1 billion in senior unsecured notes due in 2012. These notes will carry a 5.15% annual interest rate. The company intends to use the proceeds primarily for general corporate purposes and to refinance existing short-term debt. This includes repaying $500 million in indebtedness that matured on May 15, 2007. This move indicates PepsiCo's proactive approach to managing its capital structure and ensuring liquidity. Investors should note the details of the offering, including the interest rate and maturity date, as they relate to the company's overall debt profile and financing strategy. Further details and offering materials can be found in the Registration Statement filed with the SEC.

Key Highlights

1PepsiCo announced a $1 billion offering of senior unsecured notes.
2The notes will mature on May 15, 2012, and bear an annual interest rate of 5.15%.
3Proceeds are designated for general corporate purposes.
4A portion of the funds will be used to repay $500 million of maturing short-term indebtedness.
5Merrill Lynch, J.P. Morgan, and UBS Securities are acting as joint book runners for the offering.
6The filing serves as an announcement and does not constitute an offer to sell or buy securities.

PEPSICO INC 8-K Report, Corporate Update (May 17, 2007)

Summary

Key Highlights

Frequently Asked Questions