Kellogg keeps tender cap at $474.8 million; 7.45% notes offer ends

New York, March 24 – Kellogg Co. said that holders tendered an additional $150,000 of its $1.1 billion of 7.45% debentures due 2031 after the early tender deadline but that none of these tenders were accepted for purchase. Notes will be returned.

The company previously increased the cap to $474,821,000 from the initial $440 million, allowing it to buy all the notes tendered by the early deadline of 5 p.m. ET on March 9.

Those early tenders were settled on March 10.

Kellogg also announced on March 10 that the payment amount in the tender was $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.

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.

As announced on Feb. 25, the tender expired at 11:59 p.m. ET on March 23.

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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