PepsiCo raises €1 billion in European bond market after cutting profit outlook
PepsiCo Inc. issued a two‑part €1 billion (≈$1.12 billion) bond in Europe, split into €500 million three‑year and nine‑year tranches. The raise follows a profit outlook cut driven by weaker North American beverage sales, which are down 3% year‑to‑date. CEO Ramon Laguarta said the company is focused on improving soft‑drink performance. The offering was priced with the shorter tranche about 60 bps above mid‑swaps and the longer about 105 bps above mid‑swaps.
Why it matters
Morgan Stanley lowered its price target for PepsiCo to $145 from $160, and JPMorgan cut its target to $137 from $138, reflecting the financing need and revised outlook. The bond provides liquidity for the company while signaling tighter margins to investors.
Key facts
- 1PepsiCo issued €1 billion in two €500 million tranches, a three‑year and a nine‑year piece. finance.yahoo.com
- 2The shorter tranche is priced about 60 basis points above mid‑swap rates, the longer about 105 basis points. finance.yahoo.com
- 3North American beverage sales volumes have fallen 3% year‑to‑date. finance.yahoo.com
- 4Morgan Stanley adjusted its price target on PepsiCo to $145 from $160. marketscreener.com
- 5JPMorgan adjusted its price target on PepsiCo to $137 from $138. marketscreener.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.