Summary
PepsiCo, Inc. (PEP) filed an 8-K on November 13, 2023, to report on the successful offering of new senior notes. The company raised a total of $2.5 billion through three series of notes: $1 billion in Floating Rate Notes due 2024, $800 million in 5.250% Senior Notes due 2025, and $700 million in 5.125% Senior Notes due 2026. These notes are unsecured and rank equally with PepsiCo's other senior indebtedness. The net proceeds from this offering, approximately $2,495 million after deducting underwriting discounts and expenses, are designated for general corporate purposes, including the repayment of commercial paper. This debt issuance, conducted under an existing shelf registration statement, provides PepsiCo with additional financial flexibility and resources for its operational needs.
Key Highlights
- 1PepsiCo successfully issued $2.5 billion in senior notes across three tranches.
- 2The offering includes $1 billion in Floating Rate Notes due 2024, $800 million in 5.250% Senior Notes due 2025, and $700 million in 5.125% Senior Notes due 2026.
- 3Net proceeds from the offering amount to approximately $2,495 million.
- 4Proceeds will be used for general corporate purposes, including the repayment of commercial paper.
- 5The notes are unsecured and rank equally with PepsiCo's other senior debt.
- 6The offering was made under PepsiCo's existing shelf registration statement.
- 7BofA Securities, Inc. acted as the book-running manager for the offering.