PepsiCo on Tuesday launched a USD2bn two-part bond after the food and beverage giant gave up plans for a third floating-rate tranche of the deal.
The A1/A-/A rated deal comprises a USD750m three-year piece launched at Treasuries +30bp and a USD1.25bn 10-year launched at T+92bp.
That was significantly tighter than initial price thoughts of low 40s and 105bp area out earlier in the day. A three-year floating-rate note had also been planned.
PepsiCo's outstanding 1.25% August 2017s are trading at a G spread of 34bp, while its 2.75% March 2023s are at G+94bp. Based on the launch levels, the new trade appears to have a negative new issue concession on both tranches.
Active bookrunners on the deal are Citigroup, RBS and UBS.
