8-KMaterial AgreementsExhibits & Filings

PEPSICO INC 8-K Report, Material Agreement (May 25, 2007)

Filed May 25, 2007For Securities:PEP

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.

Frequently Asked Questions

This 8-K filing primarily announces PepsiCo's entry into a material definitive agreement, specifically the issuance of $1 billion in senior unsecured notes and related indenture.

The notes bear a 5.15% annual interest rate, payable semi-annually on May 15 and November 15, with a maturity date of May 15, 2012. They are senior unsecured obligations of PepsiCo and are not redeemable.

PepsiCo plans to use the net proceeds of approximately $995.5 million primarily for general corporate purposes and to repay existing short-term indebtedness, including a $500 million debt that matured on May 15, 2007.

No, the notes are senior unsecured obligations of PepsiCo, meaning they are not backed by specific collateral and rank equally with other unsecured senior indebtedness of the company.