Fitch: Mondelez notes BBB

Fitch Ratings said it expects to assign a BBB rating to Mondelez International, Inc.'s €400 million floating-rate notes due in 2015, €750 million notes due in 2017 and €1.25 billion notes due in 2021.

The net proceeds will be used to finance the purchase of notes validly tendered and accepted pursuant to a tender offer announced in November 2013, Fitch said.

The issuance is debt neutral and terms and conditions of these notes are similar to other unsecured notes in the company's capital structure, the agency said.

The company has a long-term issuer default rating of BBB, senior unsecured debt rating of BBB, credit facility rating of BBB, short-term issuer default rating of F2 and commercial-paper rating of F2, Fitch said.

On Nov. 19, Mondelez announced that it commenced a cash tender offer for up to a combined aggregate principal amount of $6.6 billion for its $1.5 billion 6.5% notes due in 2017, $1.4 billion 6.125% notes due in 2018, $800 million 6.125% notes due in 2018 and its $2.9 million in 5.375% notes due in 2020.

The new notes will rank equal to the company's existing and future senior unsecured indebtedness, the agency said.

The notes also have a provision that require the company to repurchase the notes at a purchase price of 101 plus accrued interest if there is a change of control concurrent with a ratings downgrade below investment grade by each of the three rating agencies, Fitch said.

Mondelez is one of the largest global packaged food companies and maintains substantial scale to compete effectively despite losing the diversification from its former $19 billion North American Grocery business, which was spun off Oct. 1, 2012, the agency said.

Sales from geographically diversified emerging markets are expected to help Mondelez generate faster growth than prior to the spinoff, Fitch said.

Partially offsetting the stronger growth prospects are significant exposure to mature markets in developed Europe and North America, the agency said.

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