Kraft Foods tenders for up to $1 billion of 5.625% notes, 6.25% notes

By Jennifer Chiou

New York, Nov. 29 - Kraft Foods Inc. announced the start of a cash tender offer for up to $1 billion total of its $2 billion of 5.625% notes due 2011 and its $1.5 billion of 6.25% notes due 2012.

The Northfield, Ill., confection, food and beverage company is specifically tendering for up to $600 million of the 5.625% notes and $400 million of the 6.25% notes.

The offer will end at midnight ET on Dec. 27.

Those who tender prior to 5 p.m. ET on Dec. 10 will receive an early tender premium of $30.00 per $1,000 principal amount of notes.

The calculations for the payouts will be determined using the 1% Treasury due Oct. 31, 2011 and a spread of 15 basis points for the 5.625% notes and the 0.75% Treasury due May 31, 2012 and 30 bps for the 6.25% notes. Pricing will be fixed on Dec. 13.

Settlement is earmarked for Dec. 29.

Kraft noted that it intends to fund the offer with cash on hand and short-term borrowings.

Barclays Capital Inc. (800 438-3242 or call collect 212 528-7581) and RBS Securities Inc. (877 297-9832 or call collect 203 897-6145) are the dealer managers. The information agent and depositary is Global Bondholders Services Corp. (866 794-2200 or call collect 212 430-3774).

© 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.