The Kraft Heinz Company Commences Cash Tender Offer for Up to $2.0 Billion Aggregate Purchase Price of Certain of Its Outstanding Notes
November 18, 2021 at 04:05 pm EST
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The Kraft Heinz Company announced that Kraft Heinz Foods Company, its 100% owned subsidiary, has commenced an offer to purchase for cash up to the maximum combined aggregate purchase price of $2.0 billion, including principal and premium but excluding accrued and unpaid interest, of its 3.500% Senior Notes due June 2022, 4.625% Senior Notes due January 2029, 4.250% Senior Notes due March 2031, 6.750% Senior Notes due March 2032, 5.000% Senior Notes due July 2035, 6.500% Senior Notes due February 2040, 5.200% Senior Notes due July 2045, 6.875% Senior Notes due January 2039, 7.125% Senior Notes due August 2039, 5.500% Senior Notes due June 2050, and 4.875% Senior Notes due October 2049. Subject to the Maximum Tender Amount, the amount of a Series of Notes that is purchased in the Tender Offer will be based on the Acceptance Priority Levels set forth below. The Tender Offer is being made on the terms and subject to the conditions set forth in the offer to purchase dated November 18, 2021 . Capitalized terms used in this release but not otherwise defined have the meaning given in the Offer to Purchase. Consummation of the Tender Offer and payment for the Notes accepted for purchase are subject to the satisfaction or waiver of certain conditions described in the Offer to Purchase, including among other things, the receipt of proceeds upon completion of a transaction involving the sale of certain assets in Kraft Heinz?s global cheese business and the license of certain trademarks, pursuant to a definitive agreement with an affiliate of Groupe Lactalis, as announced by Kraft Heinz in September 2020 .Subject to applicable law, the Issuer has reserved the absolute right, in its sole discretion, to at any time (i) waive any and all conditions to the Tender Offer, including the satisfaction of Financing Condition, (ii) extend, terminate, or withdraw the Tender Offer, (iii) increase or waive the Maximum Tender Amount, with or without extending the Withdrawal Date (as defined below), or (iv) otherwise amend the Tender Offer in any respect.
The Kraft Heinz Company specializes in producing and marketing foodstuffs. The products are skid under the Kraft, Heinz, ABC, Capri Sun, Classico, Jell-O, Kool-Aid, Lunchables, Maxwell House, Oscar Mayer, Ore-Ida, Philadelphia, Planters, Plasmon, Quero, Weight Watchers Smart Ones and Velveeta brands. Net sales break down by family of products as follows:
- sauces and condiments (31.1%);
- cheese and dairy products (15%);
- ambient foods (11.5%);
- frozen and chilled products (11%);
- beverages (11%): soft and energy drinks, juices, coffee, etc.;
- meat and seafood (10.3%);
- confectionery, desserts and bakery products (4.5%);
- nutrition and infant foods (1.6%): cereals, milk, cookies, etc.;
- other (4%).
Net sales break down geographically as follows: the United States (70.2%), Canada (6.6%), the United Kingdom (4.4%) and other (18.8%).