Fitch rates Kellogg notes BBB+

Fitch Ratings said it assigned a BBB+ rating to Kellogg Co.'s €500 million 1.75% senior unsecured notes due May 24, 2021.

The company intends to use the net proceeds from this debt issuance for general corporate purposes including the repayment of commercial paper.

The new notes will rank pari passu with Kellogg's other unsecured debt.

The notes contain a Change of Control Repurchase Event provision. Upon the occurrence of both a Change of Control and rating downgrades below investment grade, unless the company exercises its right to redeem the notes, Kellogg will be required to make an offer to purchase the notes at a price equal to 101 plus accrued interest. The notes will be issued under a new indenture, which will contain standard investment grade limitations on liens, sale-leasebacks, mergers etc. but will not contain financial covenants.

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