Coca-Cola holders tender $1.04 billion of 4.875%, 5.35% notes so far

By Angela McDaniels

Tacoma, Wash., Dec. 1 - Coca-Cola Co. has received $1,041,056,000 of notes so far in the tender offer for its $1.35 billion of 4.875% notes due 2019 and $1.75 billion of 5.35% notes due 2017, according to a company news release.

Holders had tendered $456,295,000 principal amount, or 33.80%, of the 4.875% notes and $584,761,000 principal amount, or 33.41%, of the 5.35% notes as of 5 p.m. ET on Nov. 30, the early tender date.

For each $1,000 principal amount, holders will receive $1,138.99 for the 4.875% notes and $1,179.07 for the 5.35% notes. The company will also pay accrued interest up to but excluding the settlement date, which is expected to be Dec. 15.

These prices include a $30.00 early premium for each note tendered by the early tender date.

The prices were set at 2 p.m. ET on Nov. 30 using the bid-side price of the 2.625% Treasury note due Aug. 15, 2020 and a spread, which was 20 basis points for the 4.875% notes and minus 25 bps for the 5.35% notes.

The company is offering to purchase up to $1,601,783,000 principal amount of the notes. This is equal to $3.45 billion minus the principal amount of notes accepted in a tender offer that expired on Nov. 22.

The notes are listed in order of priority acceptance level.

The offer will end at 11:59 p.m. ET on Dec. 14. The deadline was previously extended from Dec. 6.

Previous offer

Coca-Cola announced on Nov. 4 two separate cash tender offers for several series of notes issued by Coca-Cola and Coca-Cola Enterprises Inc.

The company acquired the assets and liabilities of Coca-Cola Enterprises' North American business as well as the Coca-Cola Enterprises corporate entity, which was renamed Coca-Cola Refreshments USA, Inc.

In the first offer, holders tendered about $1.85 billion of notes, including:

• $74,641,000, or 24.88%, of Coca-Cola Refreshments' $300 million of 7.125% debentures due 2017;

• $146.94 million, or 58.78%, of the subsidiary's $250 million of 4.5% notes due 2019;

• $185,253,000, or 37.92%, of its $488.56 million of zero-coupon notes due 2020;

• $317,892,000, or 42.63%, of its $745,617,000 of 8.5% debentures due 2022;

• $99,154,000, or 41.92%, of its $236,533,000 of 8% debentures due 2022;

• $95.36 million, or 38.14%, of its $250 million of 6.75% debentures due 2023;

• $156,538,000, or 52.19%, of its $299.95 million of 7% debentures due 2026;

• $255,567,000, or 51.11%, of its $500 million of 6.95% debentures due 2026;

• $196,371,000, or 49.09%, of its $400 million of 6.75% debentures due 2028;

• $119,611,000, or 39.87%, of its $299.99 million of 6.7% debentures due 2036;

• $127,441,000, or 50.98%, of its $250 million of 6.75% debentures due 2038;

• $51,959,000, or 20.78%, of its $250 million of 7% debentures due 2098; and

• $21.49 million, or 18.32%, of Coca-Cola's $117,325,000 of 7.375% notes due 2093.

The purchase prices for the offer were determined using a spread over the bid-side price of a U.S. Treasury note. The company originally set the prices on Nov. 15. On Nov. 16, it changed some of the spreads and said it would reset the prices at 2 p.m. ET on Nov. 22.

For each $1,000 principal amount, the company paid the following:

• $1,278.74 for Coca-Cola Refreshments' 7.125% debentures, which was set using a spread of negative 25 bps;

• $1,117.40 for the subsidiary's 4.5% notes. The spread was 15 bps;

• $736.98 for its zero-coupon notes. The spread was 40 bps;

• $1,458.02 for its 8.5% debentures. The spread was 70 bps;

• $1,424.64 for its 8% debentures. The spread was 75 bps;

• $1,319.37 for its 6.75% debentures due 2023. The spread was 80 bps;

• $1,302.29 for its 7% debentures due 2026. The spread was 10 bps;

• $1,305.07 for its 6.95% debentures. The spread was 5 bps;

• $1,281.91 for its 6.75% debentures due 2028. The spread was 20 bps;

• $1,290.15 for its 6.7% debentures. The spread was 50 bps;

• $1,295.52 for the 6.75% debentures due 2038. The spread was 55 bps;

• $1,344.28 for its 7% debentures due 2098. The spread was 95 bps; and

• $1,414.28 for Coca-Cola's 7.375% notes. The spread was 95 bps.

The prices for the first six series of notes were based on the 2.625% Treasury due Aug. 15, 2020. The prices for the remaining notes were based on the 4.375% Treasury due May 15, 2040.

Deutsche Bank Securities Inc. (866 627-0391 or collect 212 250-2955) and HSBC Securities (USA) Inc. (888 HSBC4LM or collect 212 525-5552) are coordinating dealer managers, and Goldman Sachs & Co. and Merrill Lynch, Pierce, Fenner & Smith Inc. are dealer managers. D.F. King & Co., Inc. (800 901-0068 or collect 212 269-5550) is the tender and information agent.

Coca-Cola is a beverage manufacturer and distributor based in Atlanta.

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