Summary
PepsiCo, Inc. (PEP) filed an 8-K on May 28, 2021, to announce the termination and replacement of its credit facilities. The company terminated its $3.75 billion 364-day unsecured revolving credit agreement dated June 1, 2020, and simultaneously entered into a new $3.75 billion 364-day unsecured revolving credit agreement, expiring on May 27, 2022. This new facility allows for borrowings in USD and Euros and includes an option to increase commitments up to $4.5 billion, with provisions for renewal or conversion into a term loan. In addition to the short-term facility, PepsiCo also terminated its $3.75 billion five-year unsecured revolving credit agreement dated June 3, 2019, and entered into a new $3.75 billion five-year unsecured revolving credit agreement, expiring on May 28, 2026. This longer-term facility also permits borrowings in USD and Euros, includes a $750 million swing line subfacility for Euro borrowings, and offers the potential to increase commitments to $4.5 billion. Both new credit agreements are for general corporate purposes and contain standard terms and conditions.
Key Highlights
- 1PepsiCo has replaced its existing 364-day and five-year unsecured revolving credit agreements with new, equivalent facilities.
- 2The new 364-day credit agreement has a facility size of $3.75 billion and expires on May 27, 2022.
- 3The new five-year credit agreement has a facility size of $3.75 billion and expires on May 28, 2026.
- 4Both new credit agreements allow for borrowings in U.S. Dollars and Euros.
- 5There is an option to increase the size of both credit facilities up to $4.5 billion with lender consent.
- 6Funds borrowed under these agreements are for general corporate purposes.
- 7No outstanding borrowings were reported on the terminated credit agreements.