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PepsiCo to buy back $500 million of 7.9% notes through cash tender
By Devika Patel
Knoxville, Tenn., Oct. 19 - PepsiCo Inc. said it has launched a cash tender offer for up to $500 million, or 25%, of its $2 billion of 7.9% senior notes due 2018.
The offer will expire at 11:59 p.m. ET on Nov. 16.
The Purchase, N.Y., beverage and food company said it expects to pay around $1,347.97 for each $1,000 of notes, which includes a $30.00 early tender payment for notes tendered before 5 p.m. ET on Nov. 1.
The actual tender consideration will be determined by reference to a fixed spread of 40 basis points over the bid-side yield to maturity of the 2.625% U.S. Treasury security due Aug. 15, 2020, as displayed on the Bloomberg Government Price Monitor, as of 2 p.m. ET on Nov. 1.
Holders will also receive interest up to, but not including, the settlement date.
J.P. Morgan Securities LLC (866 834-4666 or collect at 212 834-2494) and RBS Securities Inc. (877 297- 9832 or collect at 203 897-6145) are the dealer managers. Global Bondholder Services Corp. (866 387-1500 or 212 430-3774) is the depositary and information agent.
The offer is subject to certain conditions being met, including a minimum tender amount.
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