Summary
On October 7, 2019, PepsiCo, Inc. announced a significant debt offering, successfully issuing $1 billion in 2.875% Senior Notes due in 2049. This move allows the company to secure long-term, low-cost financing, with a coupon rate of 2.875% for a 30-year maturity. The offering was managed by prominent book-running managers, including Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, and Mizuho Securities USA LLC. Notably, PepsiCo intends to use the net proceeds of approximately $974 million to fund "Eligible Green Projects" that align with the United Nations' Sustainable Development Goals. This strategic issuance underscores PepsiCo's commitment to both financial management and its corporate social responsibility initiatives, signaling a proactive approach to funding sustainable development while managing its capital structure. The notes are unsecured and rank equally with other senior unsecured indebtedness.
Key Highlights
- 1PepsiCo issued $1,000,000,000 in 2.875% Senior Notes due 2049.
- 2The offering provides long-term financing with a maturity date of October 15, 2049.
- 3Net proceeds of approximately $974 million were raised after deducting underwriting discounts and expenses.
- 4Proceeds are earmarked for funding "Eligible Green Projects" aligned with UN Sustainable Development Goals.
- 5The Notes carry a fixed coupon rate of 2.875%, paid semi-annually.
- 6The Notes are unsecured obligations and rank equally with PepsiCo's other senior unsecured indebtedness.
- 7The offering was facilitated by a shelf registration statement filed in February 2017.