Kraft Foods subsidiary calls all $200 million 7% debentures due 2011

By Jennifer Chiou

New York, July 31 - Kraft Foods Inc.'s wholly owned subsidiary, Kraft Foods Global, Inc., notified Deutsche Bank Trust Co. Americas, as successor indenture trustee, of its election to redeem all of its $200 million of 7% debentures due June 15, 2011, according to an 8-K filing with the Securities and Exchange Commission.

The company will redeem the debentures at par plus accrued interest to Sept. 3, the redemption date.

As a result of the early extinguishment of the securities, Kraft said it expects to record a loss of about $14 million and plans to fund the redemption price with cash from operations or through the issue of commercial paper.

The food company is based in Northfield, Ill.

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