Moody's rates Mondelez notes A3

Moody's Investors Service said it assigned an A3 rating to €300 million of senior unsecured zero coupon convertible notes offered by Mondelez International Holdings Netherlands BV, an intermediate holding company wholly owned by Mondelez International, Inc.

The three-year notes will be guaranteed by Mondelez and will rank equally with other senior unsecured debt of MIHN. The bonds will be exchangeable into shares of JDE Peet's NV. during a predetermined exchange period, although the issuer can choose to deliver the shares or the equivalent in cash.

Mondelez will use the proceeds for general corporate purposes including acquisition funding for Chipita SA.

“The offering is credit positive because it terms out funding for the anticipated acquisition without materially impacting leverage. Thus, ratings are not affected,” Moody’s said in a press release.

The outlook is stable.

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