Kellogg selling $650 million of two-year, 10-year senior notes Monday

By Andrea Heisinger

New York, Feb. 11 - Kellogg Co. is in Monday's market with a $650 million offering of senior notes (Baa1/BBB+/BBB+) in two tranches, according to a market source and a 424B5 filing with the Securities and Exchange Commission.

The offering includes two-year floating-rate notes and 10-year fixed-rate bonds. The floaters are non-callable.

There is a change-of-control put at 101%.

Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the bookrunners.

Proceeds will be used for general corporate purposes, including, along with cash on hand, to repay $750 million of 4.25% senior notes due March 6, 2013.

Kellogg was last in the U.S. bond market with a $1.45 billion sale in three tranches on May 14, 2012. That offering included a 3.125% 10-year note sold at 145 basis points over Treasuries.

The maker of cereal and convenience foods is based in Battle Creek, Mich.

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