Why did PepsiCo terminate and replace its credit agreements?

PepsiCo replaced its credit agreements as a proactive measure to ensure continued access to flexible funding and to potentially optimize its debt maturity profile and borrowing costs. The fact that there were no outstanding borrowings indicates this was a routine refinancing and not a response to any immediate financial distress.

What is the total borrowing capacity under the new credit facilities?

The company has entered into two new credit agreements, each with a principal amount of $5 billion, for a total initial capacity of $10 billion. Both agreements also provide for the potential to increase commitments up to $5.75 billion each, offering a potential aggregate borrowing capacity of up to $11.5 billion.

What are the main differences between the new 364-day and five-year credit agreements?

The primary difference is the maturity date: the 364-day agreement expires on May 21, 2027, while the five-year agreement expires on May 22, 2031. The five-year agreement also includes a specific $1.2 billion swing line subfacility for Euro-denominated borrowings, which is not mentioned for the 364-day agreement.

Can the maturities of these new credit agreements be extended?

Yes, the 364-day credit agreement can be renewed for an additional 364-day period. The five-year credit agreement can be extended for an additional one-year period up to two times during its term.

PEP 8-K SEC Disclosure — May 22, 2026

Summary

PepsiCo, Inc. (PEP) has announced the termination of its 2025 364-day and five-year unsecured revolving credit agreements and the simultaneous entry into new, equivalent credit facilities. The company has replaced its $5 billion 364-day revolving credit agreement with a new $5 billion facility maturing on May 21, 2027, and its $5 billion five-year revolving credit agreement with a new $5 billion facility maturing on May 22, 2031. Both new agreements are with Citibank, N.A., as administrative agent and provide for potential increases in commitments up to $5.75 billion. Notably, there were no outstanding borrowings under the terminated agreements, indicating a proactive refinancing strategy rather than a response to immediate liquidity needs. These actions demonstrate PepsiCo's ongoing commitment to maintaining robust and flexible access to capital. The new credit agreements offer similar terms and capacities to the previous ones, ensuring continued financial flexibility for general corporate purposes, strategic investments, and potential acquisitions. The inclusion of features like a swing line subfacility for Euro-denominated borrowings in the five-year agreement and options for extension further underscore the company's strategic approach to treasury management and its ability to adapt to evolving market conditions. Investors can view this as a routine and prudent financial maneuver aimed at optimizing the company's liquidity and funding structure.

Key Highlights

1PepsiCo terminated its $5 billion 364-day and $5 billion five-year unsecured revolving credit agreements dated May 23, 2025.
2The company entered into new $5 billion 364-day and $5 billion five-year unsecured revolving credit agreements, both with Citibank, N.A., as administrative agent.
3There were no outstanding borrowings under the terminated credit agreements at the time of their replacement.
4The new 364-day credit agreement matures on May 21, 2027, and the new five-year credit agreement matures on May 22, 2031.
5Both new credit agreements allow for potential increases in commitments up to an aggregate of $5.75 billion.
6Funds borrowed under the new agreements are for general corporate purposes.
7The new five-year agreement includes a $1.2 billion swing line subfacility for Euro-denominated borrowings.

PEPSICO INC 8-K Report, Corporate Update (May 22, 2026)

Summary

Key Highlights

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