S&P rates Coke notes A+

S&P said it assigned its A+ issue-level rating to the Coca-Cola Co.'s proposed euro-denominated senior unsecured notes due in 2030 and 2036 with final amounts to be determined. The group's parent will issue the notes.

The company intends to use the proceeds, together with cash on hand, for the purchase of the euro notes tendered under the offers. Coke also expects to offer U.S. dollar-denominated notes under a separate prospectus supplement, together with cash on hand, for the purchase of the dollar tender notes. Neither offering is conditioned on completion of the other, the agency said.

“We view this entire transaction as roughly leverage-neutral. The tender offers in aggregate are to purchase €2.2 billion (approximately $2.6 billion equivalent) outstanding aggregate principal amount of specified euro-denominated notes and $4.25 billion outstanding aggregate principal amount of specified U.S. dollar-denominated notes,” S&P said in a press release.

All of Coke’s ratings, including the A+ long-term issuer credit rating and negative outlook, are unchanged, the agency said.

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