PepsiCo Inc.'s Proposed Senior Unsecured Notes Rated 'A+'

CHICAGO (S&P Global Ratings) March 17, 2020--S&P Global Ratings today assigned its 'A+' issue-level rating to New York-based PepsiCo Inc.'s proposed senior unsecured notes. The company will use the net proceeds from this offering for general corporate purposes, including to repay outstanding commercial paper. We believe the proceeds from the proposed issuance may also be used to pre-fund several acquisitions announced over the past several quarters. The notes will rank pari passu with the company's existing senior unsecured debt. All of our existing ratings on the company, including our 'A+' long-term issuer credit rating, are unchanged. The outlook is stable. PepsiCo recently announced that it reached an agreement to acquire Rockstar Energy Beverages for $3.85 billion. This follows several other

...March 17, 2020 CHICAGO (S&P Global Ratings) March 17, 2020--S&P Global Ratings today assigned its 'A+' issue-level rating to New York-based PepsiCo Inc.'s proposed senior unsecured notes. The company will use the net proceeds from this offering for general corporate purposes, including to repay outstanding commercial paper. We believe the proceeds from the proposed issuance may also be used to pre-fund several acquisitions announced over the past several quarters. The notes will rank pari passu with the company's existing senior unsecured debt. All of our existing ratings on the company, including our 'A+' long-term issuer credit rating, are unchanged. The outlook is stable. PepsiCo recently announced that it reached an agreement to acquire Rockstar Energy Beverages for $3.85 billion. This follows several other acquisition announcements it made over the last few quarters. There is now little room for the company to undertake additional moderate-size acquisitions because its pro forma adjusted...

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