Summary
PepsiCo, Inc. (PEP) announced on May 25, 2007, the closing of a material definitive agreement through the issuance of $1 billion in aggregate principal amount of 5.15% senior unsecured notes due May 15, 2012. These notes are unsecured and rank equally with other unsecured senior indebtedness of the company. The issuance was conducted under PepsiCo's existing shelf registration statement, with a prospectus supplement filed on May 16, 2007. Net proceeds from this issuance amounted to approximately $995.5 million. The company intends to use these funds primarily for general corporate purposes and to retire existing short-term debt, including a maturing $500 million debt obligation. This strategic move indicates PepsiCo's proactive debt management and financing strategy in 2007.
Key Highlights
- 1PepsiCo issued $1 billion in 5.15% senior unsecured notes due May 15, 2012.
- 2The notes are unsecured and rank equally with other senior unsecured debt.
- 3The issuance occurred on May 21, 2007, under an existing shelf registration statement.
- 4Net proceeds of approximately $995.5 million were received.
- 5Proceeds are intended for general corporate purposes and to repay short-term debt.
- 6This includes repaying a maturing $500 million debt obligation.
- 7The notes are not redeemable.