By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, April 5 – JAB Holdings BV sold $500 million of 4.5% sustainability-linked senior notes due 2052 at 98.254, according to a press release on Tuesday.
The notes will be guaranteed by JAB Holding Co. Sarl.
The notes priced with a spread of Treasuries plus 200 basis points, at the low end of talk in the Treasuries plus 200 bps to 205 bps area.
BofA Securities, Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Agricole CIB, J.P. Morgan Securities LLC and Santander Investment Securities Inc. are the bookrunners.
The Rule 144A and Regulation S deal marks the company’s inaugural issue of sustainability-linked senior notes.
The interest payments are linked to the issuer’s achievement of key performance indicators and sustainability performance targets, including a 46.2% reduction of absolute scope 1 and scope 2 greenhouse gas emissions by JAB Holding Co. and its consolidated subsidiaries by Dec. 31, 2030; having at least 95% of the group’s investment portfolio companies set greenhouse gas emissions reduction targets by Dec. 31, 2030; and achieving at least 30% representation of biological or self-identified women in non-executive board of directors positions at 100% of the group’s portfolio companies by Dec. 31, 2025.
If the group does not reach the stated targets by the target dates, the interest payable on the notes will be increased beginning in 2031.
Proceeds from the issue will be used for general corporate purposes, including retiring existing debt.
JAB Holdings is a subsidiary of Luxembourg-based investment conglomerate JAB Holding. JAB owns brands including Keurig, Dr Pepper, Krispy Kreme and Panera Bread.
| Issuer: | JAB Holdings BV
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| Guarantor: | JAB Holding Co.
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| Issue: | Sustainability-linked senior notes
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| Amount: | $500 million
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| Maturity: | April 8, 2052
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| Coupon: | 4.5%
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| Price: | 98.254
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| Spread: | Treasuries plus 200 bps
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| Bookrunners: | BofA Securities, Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Agricole CIB, J.P. Morgan Securities LLC and Santander Investment Securities Inc.
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| Announcement date: | April 5
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| Settlement date: | April 8
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| Marketing: | Investor calls
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | Treasuries plus 200 bps to 205 bps area
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