Summary
PepsiCo, Inc. (PEP) filed an 8-K on October 30, 2012, to report on the offering of new senior notes. The company announced on October 23, 2012, that it was offering £500,000,000 aggregate principal amount of its 2.500% Senior Notes due 2022. The net proceeds from this offering were approximately £495.6 million (or $790.1 million at the time's exchange rate), which the company intends to use for general corporate purposes, including the repayment of commercial paper. These unsecured senior notes rank equally with PepsiCo's other unsecured senior indebtedness. The notes are set to mature on November 1, 2022, with interest payable semi-annually. PepsiCo has also indicated its intention to apply for listing these notes on the New York Stock Exchange, with expected trading to commence within 30 days of the original issue date. This offering represents a capital markets activity by PepsiCo to manage its corporate funding needs.
Key Highlights
- 1PepsiCo announced an offering of £500,000,000 in aggregate principal amount of 2.500% Senior Notes due 2022.
- 2The net proceeds from the offering were approximately £495.6 million (equivalent to $790.1 million based on the October 23, 2012, exchange rate).
- 3The company intends to use the net proceeds for general corporate purposes, including the repayment of commercial paper.
- 4The Senior Notes were issued on October 30, 2012, with a maturity date of November 1, 2022.
- 5Interest on the notes is set at 2.500% per year, payable on May 1 and November 1.
- 6The notes are unsecured and rank equally with PepsiCo's other unsecured senior indebtedness.
- 7PepsiCo plans to list the notes on the New York Stock Exchange (NYSE).