EX-1.1 2 tm2416937d4_ex1-1.htm EXHIBIT 1.1

 

Exhibit 1.1

 

PEPSICO, INC.

 

4.500% Senior Notes due 2029
4.800% Senior Notes due 2034
5.250% Senior Notes due 2054

 

TERMS AGREEMENT

 

July 15, 2024

 

To:PepsiCo, Inc.
700 Anderson Hill Road
Purchase, New York 10577

 

Ladies and Gentlemen:

 

We understand that PepsiCo, Inc., a North Carolina corporation (the “Company”), proposes to issue and sell $850,000,000 of its 4.500% Senior Notes due 2029 (the “2029 Notes”), $650,000,000 of its 4.800% Senior Notes due 2034 (the “2034 Notes”) and $750,000,000 of its 5.250% Senior Notes due 2054 (the “2054 Notes,” and together with the 2029 Notes and 2034 Notes, the “Underwritten Securities”), subject to the terms and conditions stated herein and in the PepsiCo, Inc. Underwriting Agreement Standard Provisions dated as of November 18, 2019 incorporated by reference to Exhibit 1.2 to the Company’s Registration Statement on Form S-3 (File No. 333-277003) filed with the Securities and Exchange Commission on February 12, 2024 (the “Standard Provisions”). Each of the applicable provisions in the Standard Provisions (including defined terms) is incorporated herein by reference in its entirety, and shall be deemed to be a part of this Agreement to the same extent as if such provisions had been set forth in full herein. We, the underwriters named below (the “Underwriters”), offer to purchase, severally and not jointly, the amount of Underwritten Securities opposite our names set forth below at a purchase price equal to 99.495% of the principal amount thereof for the 2029 Notes, 99.291% of the principal amount thereof for the 2034 Notes and 98.870% of the principal amount thereof for the 2054 Notes.

 

1

 

 

   Principal Amount of 
Underwriters  2029 Notes   2034 Notes   2054 Notes 
BofA Securities, Inc.  $212,500,000   $162,500,000   $187,500,000 
Citigroup Global Markets Inc.   212,500,000    162,500,000    187,500,000 
J.P. Morgan Securities LLC   212,500,000    162,500,000    187,500,000 
BNP Paribas Securities Corp.   34,000,000    26,000,000    30,000,000 
HSBC Securities (USA) Inc.   34,000,000    26,000,000    30,000,000 
BBVA Securities Inc.   17,000,000    13,000,000    15,000,000 
Barclays Capital Inc.   17,000,000    13,000,000    15,000,000 
ING Financial Markets LLC   17,000,000    13,000,000    15,000,000 
SG Americas Securities, LLC   17,000,000    13,000,000    15,000,000 
TD Securities (USA) LLC   17,000,000    13,000,000    15,000,000 
Academy Securities, Inc.   8,500,000    6,500,000    7,500,000 
ANZ Securities, Inc.   8,500,000    6,500,000    7,500,000 
Cabrera Capital Markets LLC   8,500,000    6,500,000    7,500,000 
CastleOak Securities, L.P.   8,500,000    6,500,000    7,500,000 
Loop Capital Markets LLC   8,500,000    6,500,000    7,500,000 
PNC Capital Markets LLC   8,500,000    6,500,000    7,500,000 
Siebert Williams Shank & Co., LLC   8,500,000    6,500,000    7,500,000 
Total  $850,000,000   $650,000,000   $750,000,000 

 

The Underwriters agree to reimburse the Company for $1,687,500 of its expenses incurred in connection with the offering of the Underwritten Securities; such reimbursement to occur simultaneously with the purchase and sale of the Underwritten Securities at the Closing Time.

 

Section 9(f) of the Standard Provisions shall apply to this Agreement.

 

For purposes of Section 21 of the Standard Provisions, the identified provisions are: (i) the fifth paragraph of text under the caption “Underwriting” in such preliminary prospectus, Time of Sale Prospectus and the Prospectus; (ii) the third sentence of the seventh paragraph of text under the caption “Underwriting” in such preliminary prospectus, Time of Sale Prospectus and the Prospectus; (iii) the eighth paragraph of text under the caption “Underwriting” in such preliminary prospectus, Time of Sale Prospectus and the Prospectus; and (iv) the eleventh and twelfth paragraphs of text under the caption “Underwriting” in such preliminary prospectus, Time of Sale Prospectus and the Prospectus.

 

The undersigned are acting as the “Representative” under the Standard Provisions (the “Representatives”). The Representatives represent and warrant that they are duly authorized to execute and deliver this Terms Agreement on behalf of the several Underwriters named above.

 

The signature of any signatory to this Agreement may be manual or facsimile (including, for the avoidance of doubt, electronic).

 

2

 

 

The Underwritten Securities and the offering thereof shall have the following additional terms:

 

Issuer: PepsiCo, Inc.
Trade Date: July 15, 2024
Time of Sale: 4:00 P.M. New York time on the Trade Date
Settlement Date (T+2): July 17, 2024
Closing Time: 9:00 A.M. New York time on the Settlement Date
Closing Location: New York, New York
Time of Sale Prospectus: Base prospectus dated February 12, 2024, preliminary prospectus supplement dated July 15, 2024 and free writing prospectus dated July 15, 2024
Title of Securities: 4.500% Senior Notes due 2029 4.800% Senior Notes due 2034 5.250% Senior Notes due 2054
Aggregate Principal Amount Offered: $850,000,000 $650,000,000 $750,000,000
Maturity Date: July 17, 2029 July 17, 2034 July 17, 2054
Interest Payment Dates: Semi-annually in arrears on each January 17 and July 17, commencing January 17, 2025 Semi-annually in arrears on each January 17 and July 17, commencing January 17, 2025 Semi-annually in arrears on each January 17 and July 17, commencing January 17, 2025
Benchmark Treasury: 4.250% due June 30, 2029 4.375% due May 15, 2034 4.250% due February 15, 2054
Benchmark Treasury Yield: 4.135% 4.233% 4.467%
Spread to Treasury: +40 basis points +60 basis points +80 basis points
Re-offer Yield: 4.535% 4.833% 5.267%
Coupon: 4.500% 4.800% 5.250%
Price to Public: 99.845% 99.741% 99.745%
Optional Redemption: Prior to June 17, 2029, make-whole call at Treasury Rate plus 10 basis points; par call at any time on or after June 17, 2029 Prior to April 17, 2034, make-whole call at Treasury Rate plus 10 basis points; par call at any time on or after April 17, 2034 Prior to January 17, 2054, make-whole call at Treasury Rate plus 15 basis points; par call at any time on or after January 17, 2054
Net Proceeds to PepsiCo (Before Expenses): $845,707,500 $645,391,500 $741,525,000
Use of Proceeds: PepsiCo intends to use the net proceeds from this offering for general corporate purposes, including the repayment of commercial paper.
Day Count Fraction: 30/360 30/360 30/360
CUSIP / ISIN: 713448 FX1 / US713448FX12 713448 FY9 / US713448FY94 713448 FZ6 / US713448FZ69
Minimum Denomination: $2,000 and integral multiples of $1,000
Joint Book-Running Managers: BofA Securities, Inc.
Citigroup Global Markets Inc.
J.P. Morgan Securities LLC
Senior Co-Managers:

BNP Paribas Securities Corp.
HSBC Securities (USA) Inc.
BBVA Securities Inc.
Barclays Capital Inc. 

ING Financial Markets LLC
SG Americas Securities, LLC
TD Securities (USA) LLC 

Co-Managers: Academy Securities, Inc.
ANZ Securities, Inc.
Cabrera Capital Markets LLC
CastleOak Securities, L.P.
Loop Capital Markets LLC
PNC Capital Markets LLC
Siebert Williams Shank & Co., LLC

 

3

 

 

Address for Notices to the Representatives:

BofA Securities, Inc.
114 West 47th Street
NY8-114-07-01
New York, New York 10036
Attention: High Grade Debt Capital Markets Transaction Management/Legal

Facsimile: (212) 901-7881

Email: dg.hg_ua_notices@bofa.com

 

Citigroup Global Markets Inc.
388 Greenwich Street
New York, New York 10013

Attention: General Counsel
Facsimile: (646) 291-1469

 

J.P. Morgan Securities LLC
383 Madison Avenue
New York, New York 10179
Attention: Investment Grade Syndicate Desk
Facsimile: (212) 834-6081

 

4

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Terms Agreement as of the date first above written.

 

  PEPSICO, INC.
   
  By: /s/ James T. Caulfield
    Name: James T. Caulfield
    Title: Executive Vice President and Chief Financial Officer
   
  By: /s/ Ada Cheng
    Name: Ada Cheng
    Title: Senior Vice President, Finance and Treasurer

 

5

 

 

CONFIRMED AND ACCEPTED, as of the date first above written:

 

BOFA SECURITIES, INC.

CITIGROUP GLOBAL MARKETS INC.

J.P. MORGAN SECURITIES LLC

 

as Representatives of the several Underwriters  
   
By: BOFA SECURITIES, INC.  
     
  By: /s/ Robert Colucci  
    Name: Robert Colucci  
    Title: Managing Director  

 

By: CITIGROUP GLOBAL MARKETS INC.  
     
  By: /s/ Adam D. Bordner  
    Name: Adam D. Bordner  
    Title: Managing Director  

 

By: J.P. MORGAN SECURITIES LLC  
     
  By: /s/ Robert Bottamedi  
    Name: Robert Bottamedi  
    Title: Executive Director  

 

6

 

 

Schedule I

 

Time of Sale Prospectus:

 

1.Preliminary Prospectus dated July 15, 2024 (including the Base Prospectus dated February 12, 2024)

 

2.Any free writing prospectuses approved by the Representatives and filed by the Company under Rule 433(d) under the Securities Act

 

3.Final Term Sheet dated July 15, 2024 to be filed by the Company pursuant to Rule 433 under the Securities Act setting forth certain terms of the Underwritten Securities

 

7