Not for distribution directly or indirectly in Canada or Japan.
The distribution of this document in certain jurisdictions may be restricted by law. Persons who come into possession of this document are required to inquire about, and comply with, potential local restrictions.
This document does not constitute an offer, or an invitation to apply for, or an offer or invitation to purchase or subscribe for any securities either in the United States or in any other jurisdiction. Securities may not be offered or sold in the United States unless they are registered or exempt from registration under the U.S. Securities Act of 1933, as amended. Pernod Ricard does not intend to register the offer detailed in the press release, in whole or in part, in the United States, and nor does it intend to carry out any public offer in the United States.
PERNOD RICARD SUCCESSFULLY COMPLETES A US$2.0 BILLION BOND ISSUANCE IN THREE TRANCHES
|
Amount (US$) |
Maturity |
Settlement |
Coupon |
Yield |
Re-offer spread |
|
600,000,000 |
01-Apr-2028 |
01-Oct-2020 |
1.250% |
1.307% |
UST+85 bp |
|
900,000,000 |
01-Apr-2031 |
01-Oct-2020 |
1.625% |
1.713% |
UST+105 bp |
|
500,000,000 |
01-Oct-2050 |
01-Oct-2020 |
2.750% |
2.880% |
UST+145 bp |
Pernod Ricard has yesterday set the terms of its new dollar-denominated bond issuance for an aggregated principal amount of US$2,000 million across three tranches: Long 7-Year, Long 10-Year and 30-Year.
The issuer of the bonds is Pernod Ricard International Finance LLC, a wholly-owned subsidiary of
Pernod Ricard SA, the guarantor of the bonds.
The favorable market conditions and the positive reception from investors to the issuance allowed
Pernod Ricard to price the issuance at an average coupon of 1.79% and an average maturity of 14.5 years. This transaction enables Pernod Ricard to lengthen the average maturity of its bond debt from 6.0 years to 7.2 years.
The net proceeds of this issuance will be used for general corporate purposes, which may include the partial or total redemption of the Pernod Ricard SA existing US$500 million notes due April 2021 and US$1,500 million notes due January 2022, with respective coupons of 5.75% and 4.45%. The significant coupon differential between the newly-issued debt and the debt to be redeemed would generate interest savings in the years to come.
This return to the US$ bond market is another step forward in Pernod Ricard's financial strategy to pro-actively manage near-term debt redemptions while reducing its average cost of debt and lengthening its maturity profile
Tags
On the same topic
About pernod ricard
Pernod Ricard is a worldwide leader in the spirits and wine industry, blending traditional craftsmanship, state-of-the-art brand development, and global distribution technologies. Our prestigious portfolio of premium to luxury brands includes Absolut vodka, Ricard pastis, Ballantine’s, Chivas Regal, Royal Salute, and The Glenlivet Scotch whiskies, Jameson Irish whiskey, Martell cognac, Havana Club rum, Beefeater gin, Malibu liqueur and Mumm and Perrier-Jouët champagnes. Our mission is to ensure the long-term growth of our brands with full respect for people and the environment, while empowering our employees around the world to be ambassadors of our purposeful, inclusive and responsible culture of authentic conviviality. Pernod Ricard’s consolidated sales amounted to € 12,137 million in fiscal year FY23. Pernod Ricard is listed on Euronext (Ticker: RI; ISIN Code:FR0000120693) and is part of the CAC 40 and Eurostoxx 50 indices