Summary
PepsiCo, Inc. (PEP) filed an 8-K report on July 18, 2016, to announce the successful offering of €750,000,000 in 0.875% Senior Notes due 2028. The notes were issued on July 18, 2016, with a public offering price of 99.660% of the principal amount. PepsiCo received net proceeds of approximately €744 million after deducting underwriting discounts and expenses. The proceeds from this offering are designated for general corporate purposes, including the repayment of commercial paper. This move indicates a proactive approach by PepsiCo to manage its short-term debt and optimize its capital structure. The notes are unsecured and rank equally with other senior unsecured indebtedness, and PepsiCo intends to list them on the New York Stock Exchange.
Key Highlights
- 1PepsiCo issued €750 million of 0.875% Senior Notes due 2028.
- 2The offering generated net proceeds of approximately €744 million.
- 3Proceeds will be used for general corporate purposes, including commercial paper repayment.
- 4The Notes carry a coupon of 0.875% and mature on July 18, 2028.
- 5The Notes are unsecured and rank equally with other senior unsecured debt.
- 6PepsiCo intends to list the Senior Notes on the New York Stock Exchange (NYSE).
- 7The offering was conducted under PepsiCo's existing automatic shelf registration statement.