PepsiCo sets Nov. 7 redemption date for 7.9%, 5.125% notes

By Wendy Van Sickle

Columbus, Ohio, Oct. 6 – PepsiCo Inc. will redeem its $1.5 billion of 7.9% senior notes due Nov. 1, 2018 and Bottling Group, LLC’s $750 million of 5.125% senior notes due Jan. 15, 2019 on Nov. 7, according to a filing with the Securities and Exchange Commission.

The notes are being called under the make-whole redemption provisions under the note terms.

The price for the 7.9% notes will be equal to the greater of par and the sum of the present values of the remaining scheduled payments of principal and interest discounted to the redemption date on a semiannual basis at the applicable Treasury rate plus 50 basis points.

The price for the 5.125% notes will be equal to the greater of par and the sum of the present values of the remaining scheduled payments of principal and interest discounted to the redemption date on a semiannual basis at the applicable Treasury rate plus 45 bps.

PepsiCo will also pay interest to the redemption date.

Funding for the redemption will come from the issue of new senior notes.

PepsiCo is a Purchase, N.Y.-based food and beverage company.

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