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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).
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