Kellogg says $482.17 million in 6.6% notes tendered for $517.2 million

By Devika Patel

Knoxville, Tenn., Dec. 4 - Kellogg Co. announced that $482.17 million of its $1.43 billion in 6.6% notes due 2011 were tendered as part of the company's cash tender offer for up to $500 million of the notes. The company expects to pay approximately $517.2 million for the notes.

The offer expired on Dec. 3.

For each $1,000 principal amount, the company calculated its payout using the yield to maturity of the 0.875% Treasury due March 31, 2011 plus a spread of 50 basis points to 80 bps.

Those who tendered prior to the early deadline of Nov. 18 will receive the early tender payment of $1,072.72 per $1,000 in notes. Those who tendered after the early deadline date will receive $1,032.72 per $1,000 in notes.

Kellogg will also pay accrued interest up to, but not including, the purchase date.

Kellogg is funding the tender with a portion of the proceeds of its recent $500 million offering of 4.15% senior notes due 2019 and with corporate cash.

Goldman Sachs & Co. and Morgan Stanley & Co. Inc. were dealer managers.

The convenience food company is based in Battle Creek, Mich.

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