Moody’s: Mondelez Netherlands notes A3

Moody's Investors Service said it assigned A3 ratings to $3.75 billion of senior unsecured Rule 144A notes offered by Mondelez International Holdings Netherlands BV, an intermediate holding company wholly owned by Mondelez International, Inc.

Net proceeds will be used to fund the settlement of a $2.5 billion tender offer announced by Mondelez on Oct. 17, to prefund near-term debt maturities and for general corporate purposes.

Moody's also affirmed all existing ratings of Mondelez, including its Baa1 senior unsecured and Prime-2 commercial paper ratings.

The outlook is stable.

Mondelez Netherlands owns various non-U.S. operations of Mondelez representing approximately 76% or $22.5 billion of Mondelez total sales.

The notes will be guaranteed by Mondelez and issued in three tranches: $500 million floating-rate notes due 2019, $1.75 billion fixed-rate notes due 2019 and $1.5 billion fixed-rate notes due 2021.

Mondelez Netherlands recently established a $1.5 billion guaranteed senior unsecured term loan facility expiring 2021, a portion of which is likely to be drawn at settlement of the notes offering. The Mondelez Netherlands term loan facility, not rated by Moody's, is also guaranteed by Mondelez and will rank equally with the new notes.

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