Pepsi Said to Plan Benchmark Bond Deal With Floating-Rate Notes

PepsiCo Inc. (PEP) plans to sell bonds in a benchmark offering that may include floating-rate debt.

The world’s largest snack-food maker may issue three-year notes with a coupon linked to the London interbank offered rate, fixed-rate debt with a similar maturity, or a combination of the two, according to a person familiar with the transaction. The offering may also include 10-year bonds, said the person, who asked not to be identified, citing lack of authorization to speak publicly.

Proceeds will be used for general corporate purposes, the Purchase, New York-based company said today in a regulatory filing. Libor, the rate at which banks say they can borrow from one another, is the standard for about $360 trillion of financial products. Benchmark offerings are typically at least $500 million.

To contact the reporter on this story: Charles Mead in New York at cmead11@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

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