By Andrea Heisinger
Omaha, Aug. 8 - Kraft Foods Inc. priced a $3.5 billion offering of senior notes (Baa2/A-) in five tranches Wednesday, according to a market source.
A $250 million tranche of three-year 5 5/8% notes priced at 99.780 with a yield of 5.706. They had a spread of 105 basis points.
The second tranche was $750 million in 5½ year 6% notes that priced at 99.701 with a yield of 6.065% and a spread of 135 bps.
A $1.5 billion tranche of 10-year 6½% notes priced at 99.414 with a yield of 6.581% and a spread of 170 bps.
The final fixed-rate tranche was $750 million of 30-year 7% notes priced at 98.79 with a yield of 7.098% and a spread of 205 bps.
A $250 million tranche of three-year floating-rate notes priced at par with a coupon of three-month Libor plus 50 bps.
Bookrunners on the deal were Citigroup Global Markets Inc., Deutsche Bank Securities, Goldman Sachs & Co., and J.P. Morgan Securities Inc.
The Northfield, Ill., food and beverage company plans to use the proceeds for general corporate purposes, including repayment of outstanding commercial paper.
Issuer: Kraft Foods Inc.
| Security description: | Senior notes
|
| Amount: | $3.5 billion
|
| Bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities, Goldman Sachs & Co., J.P. Morgan Securities Inc.
|
| Pricing date: | Aug. 8
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: A-
|
|
|
| Three-year notes
|
| Amount: | $250 million |
|
| Maturity: | August 2010
|
| Coupon: | 5.625%
|
| Price: | 99.780
|
| Yield: | 5.706%
|
| Spread: | 105 bps
|
|
|
| Five-and-a-half-year notes
|
| Amount: | $750 million
|
| Maturity: | February 2013
|
| Coupon: | 6%
|
| Price: | 99.701
|
| Yield: | 6.065%
|
| Spread: | 135 bps
|
|
|
| Ten-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | August 2017
|
| Coupon: | 6 ½ %
|
| Price: | 99.414
|
| Yield: | 6.581%
|
| Spread: | 170 bps
|
|
|
| Thirty-year notes
|
| Amount: | $750 million |
|
| Maturity: | August 2037 |
|
| Coupon: | 7%
|
| Price: | 98.79
|
| Yield: | 7.098%
|
| Spread: | 205 bps
|
|
|
| Floating-rate notes
|
| Amount: | $250 million
|
| Maturity: | August 2010
|
| Security description: | Floating-rate notes
|
| Coupon: | Three-month Libor plus 50 bps
|
| Price: | Par
|
| Yield: | Three-month Libor plus 50 bps
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
