Coca-Cola Co. (KO:US), the world’s largest soft-drink maker, sold $2.5 billion of bonds in its first offering in almost a year.
The producer of Sprite and Dasani water issued $500 million of floating-rate debt maturing in two years to yield 2 basis points less than the three-month London interbank offered rate, according to data compiled by Bloomberg. It also sold $1.25 billion of 1.15 percent, five year-debt to yield 45 basis points more than similar-maturity Treasuries and $750 million of 2.5 percent, 10-year bonds at a relative yield of 67 basis points.
The bonds are rated Aa3 by Moody’s Investors Service, AA- by Standard & Poor’s and A+ by Fitch Ratings, the ratings companies said today in separate statements.
Proceeds will be used to redeem all of the company’s 5 percent notes due in August, 7.375 percent securities maturing in 2014 and 4.25 percent debentures due 2015, as well as for general corporate purposes, the Atlanta-based beverages maker said today in a regulatory filing.
The sale follows a $2.5 billion issue from PepsiCo Inc. (PEP:US) on Feb. 25, in which the world’s largest snack-food maker sold $1.25 billion of 10-year debt yielding 2.76 percent, 21 basis points above the 2.55 percent yield on Coca-Cola’s April 2023 debt issued today, Bloomberg data show. Moody’s rates the PepsiCo bond Aa3, the same as the Coca-Cola issue. S&P grades PepsiCo’s securities at A-, or three levels lower.
Coca-Cola previously sold debt in March 2012, issuing $1 billion each of two-year floaters to yield 5 basis points less than Libor and 0.75 percent, three-year securities to yield 35 basis points more than similar-maturity Treasuries, Bloomberg data show.
The bonds due in March 2015 traded at 100.8 cents on the dollar to yield 0.36 percent, or a 12.2 basis-point spread, yesterday, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
BNP Paribas SA, Citigroup Inc., Credit Suisse Group AG and Morgan Stanley managed today’s offering, Bloomberg data show.
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