Hershey to spend $100 million in tender for 7.2%, 8.8% debentures

New York, Aug. 11 – Hershey Co. announced a tender offer for its $100 million of 8.8% debentures due 2021 and $250 million of debentures due 2027.

The maximum purchase price in the offer is capped at $100 million, according to a news release.

Pricing for the 8.8% debentures will be based on a 75 basis point spread over the 1.625% Treasury due July 31, 2020. For the 7.2% debentures, it will be calculated using a 95 bp spread over the 2.125% Treasury due May 15, 2025.

The price includes an early tender amount of $30.00 per $1,000 that will only be paid to holders who tender by the early deadline of 5 p.m. ET on Aug. 24.

Pricing will be fixed at 2 p.m. ET on Aug. 25.

The tender ends at 11:59 p.m. ET on Sept. 8.

Hershey will also pay accrued interest on debentures purchased.

If the offer is oversubscribed, securities will be accepted on a pro rata basis.

The dealer managers are BofA Merrill Lynch (888 292-0070 or 980 387-3907) and Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106). The information agent is Global Bondholder Services Corp. (866 470-3700 or 212 430-3774).

Hershey is a Hershey, Pa., maker of confectionery.

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