Summary
PepsiCo, Inc. (PEP) announced on February 25, 2009, a public offering of $1.0 billion in aggregate principal amount of 3.75% senior notes due March 1, 2014. The notes were offered at a price of 99.788% of their principal amount, with an expected net proceeds of approximately $994 million. These net proceeds are intended for general corporate purposes. This debt issuance occurred during a period of economic uncertainty, and the funds raised will bolster PepsiCo's financial flexibility. The notes are unsecured obligations, ranking equally with other senior indebtedness, and will mature in five years.
Key Highlights
- 1PepsiCo launched a $1.0 billion offering of 3.75% senior notes due 2014.
- 2Net proceeds are expected to be approximately $994 million, intended for general corporate purposes.
- 3The offering was made under PepsiCo's existing automatic shelf registration statement.
- 4The notes will mature on March 1, 2014, with interest payable semi-annually.
- 5The notes are unsecured and rank equally with other senior unsecured indebtedness.
- 6PepsiCo has the option to redeem the notes at any time, subject to certain conditions.
- 7The offering was led by Morgan Stanley & Co. Incorporated, Muriel Siebert & Co., Inc., and UBS Securities LLC.