NEW YORK, Feb 25 (IFR) - PepsiCo on Tuesday launched a
USD2bn two-part bond after the food and beverage giant gave up
plans for a third floating-rate tranche of the deal.
The A1/A-/A rated deal comprises a USD750m three-year piece
launched at Treasuries +30bp and a USD1.25bn 10-year launched at
That was significantly tighter than initial price thoughts
of low 40s and 105bp area out earlier in the day. A three-year
floating-rate note had also been planned.
PepsiCo's outstanding 1.25% August 2017s are trading at a G
spread of 34bp, while its 2.75% March 2023s are at G+94bp. Based
on the launch levels, the new trade appears to have a negative
new issue concession on both tranches.
Active bookrunners on the deal are Citigroup, RBS and UBS.