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Kellogg gets tenders for $474.8 million 7.45% notes so far; cap lifted
By Susanna Moon
Chicago, March 10 – Kellogg Co. said holders had tendered $474,821,000 principal amount of its $1.1 billion of 7.45% debentures due 2031 as of 5 p.m. ET on March 9, the early tender date.
As announced Feb. 25, Kellogg was tendering for up to $440 million principal amount of the notes.
On Thursday, Kellogg increased the maximum tender amount to $474,821,000, the amount tendered so far, and accepted those notes for purchase, according to a press release.
The company will pay $1,301.77 for each $1,000 principal amount of notes tendered by the early deadline.
The total payment includes an early tender premium of $30.00 for each $1,000 of notes.
Those who tender after the early deadline will receive the total amount less the early premium.
Pricing was set at 2 p.m. ET on March 9 using the yield to maturity of the 1.625% U.S. Treasury notes due Feb. 15, 2026, which was 1.892%, plus 275 basis points.
The company also will pay accrued interest up to but excluding the settlement date of March 10 for early tendered notes and March 24 for all other tenders.
The tender offer is set to run until 11:59 p.m. ET on March 23 but no more notes will be purchased in the offer unless the company again lifts the tender cap.
Tendered notes may no longer be withdrawn, as of the early tender deadline.
The company previously said it reserves the right to waive the conditions to the offer; to extend, terminate or withdraw the tender offer; and to increase or decrease the maximum tender amount.
Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057), Barclays (800 438-3242 or 212 528-7581) and BofA Merrill Lynch (888 292-0070 or 980 387-3907) are the lead dealer managers. D.F. King & Co., Inc. (800 499-8159, 212 269-5550 or kelloggs@dfking.com) is the information agent.
The issuer is a maker of cereal and convenience foods based in Battle Creek, Mich.
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