Coca-Cola Co.'s Proposed Senior Unsecured Euro Notes Rated 'A+'

August 8, 2024--S&P Global Ratings today assigned its 'A+' issue-level rating to Atlanta-based Coca-Cola Co.'s (Coke) proposed euro-denominated senior unsecured notes due 2036 and 2053 (final amounts to be determined). The notes will rank equally with the company's existing senior unsecured notes. Coke is drawing these notes under its shelf registration dated Oct. 28, 2022. Coke intends to use the net proceeds for general corporate purposes. This potentially includes for working capital, capital expenditure, acquisitions, investments in the business, debt repayment, and potential payments in connection with a $6 billion tax liability decision against the company by the U.S. Tax Court. The company will pay the liability and plans to appeal the decision. We view the contemplated note offerings as

...August 8, 2024 August 8, 2024--S&P Global Ratings today assigned its 'A+' issue-level rating to Atlanta-based Coca-Cola Co.'s (Coke) proposed euro-denominated senior unsecured notes due 2036 and 2053 (final amounts to be determined). The notes will rank equally with the company's existing senior unsecured notes. Coke is drawing these notes under its shelf registration dated Oct. 28, 2022. Coke intends to use the net proceeds for general corporate purposes. This potentially includes for working capital, capital expenditure, acquisitions, investments in the business, debt repayment, and potential payments in connection with a $6 billion tax liability decision against the company by the U.S. Tax Court. The company will pay the liability and plans to appeal the decision. We view the contemplated note offerings as modesty leveraging with a pro forma leverage of 2.8x after the $6 billion liability payment. This compares with our estimated S&P Global Ratings-adjusted leverage of about 2.4x for...

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