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Simpson Thacher Represents Underwriters in €2.4 Billion Notes Offering by Mondelēz International, Inc. (f/k/a Kraft Foods Inc.) and Dealer Managers in Related Tender Offer

12.11.13

Simpson Thacher represented the underwriters, led by BofA Merrill Lynch, Credit Suisse and HSBC, in connection with a registered public offering by Mondelēz International, Inc. (f/k/a Kraft Foods Inc.) of euro-denominated notes to be listed on the New York Stock Exchange. Mondelēz offered €400 million of its Floating Rate Notes due 2015, €750 million of its 1.125% Notes due 2017 and €1.25 billion of its 2.375% Notes due 2021, amounting to €2.4 billion (US$3.3 billion) of new notes. The offering closed on December 11, 2013.

 

Mondelēz intends to use the net proceeds from the issuance of the notes to fund a cash tender offer for up to $3.4 billion aggregate principal amount of its 6.500% notes due in August 2017, 6.125% notes due in February 2018, 6.125% notes due in August 2018 and 5.375% notes due in February 2020. Simpson Thacher represented the dealer managers, led by BofA Merrill Lynch and Credit Suisse, in connection with the tender offer.

 

Mondelēz is one of the world’s largest snack companies with global net revenues of $35.0 billion in 2012. Following the spin-off of its North American grocery operations under Kraft Foods Group, Inc. to its shareholders in 2012, the company changed its name from Kraft Foods Inc. to Mondelēz International, Inc. The company’s portfolio includes nine brands with 2012 revenues exceeding $1.0 billion each: Oreo, Nabisco, and LU biscuits; Milka, Cadbury Dairy Milk and Cadbury chocolates; Trident gum; Jacobs coffee; and Tang powdered beverage.

 

The Simpson Thacher team included Andy Keller, Teresa Chen and Daniel Hulme (Capital Markets); Jonathan Cantor and Adam Wells (Tax); Genevieve Dorment (Intellectual Property); and Jennie Getsin (Blue Sky).