Kraft Heinz Announces Upsize of Previously Announced Cash Tender Offer for $1 Billion to an Aggregate Purchase Price of $2.5 Billion
The Kraft Heinz Company (“Kraft Heinz”) (Nasdaq: KHC) announced today that its 100% owned subsidiary Kraft Heinz Foods Company (the “Issuer”) is increasing the maximum combined aggregate purchase price (the “Maximum Tender Amount”) of its outstanding 3.500% senior notes due June 2022 (the “June 2022 Notes”), 3.500% senior notes due July 2022 (the “July 2022 Notes”), 4.000% senior notes due 2023 (the “2023 Notes”) and 4.875% second lien senior secured notes due 2025 (the “2025 Notes” and, together with the June 2022 Notes, the July 2022 Notes and the 2023 Notes, the “Notes” and each, a “Series” of Notes) to be purchased by the Issuer pursuant to its previously announced offer to purchase for cash (the “Tender Offer”) to $2.5 billion, excluding accrued and unpaid interest, from the previously announced Maximum Tender Amount of $1,000,000,000. 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 other terms of the Tender Offer remain unchanged. The Tender Offer is being made on the terms and subject to the conditions set forth in the offer to purchase dated September 11, 2019, as amended by a supplement dated September 11, 2019 (together, the “Offer to Purchase”).
Consummation of the Tender Offer and payment for the tendered Notes is subject to the satisfaction or waiver of certain conditions described in the Offer to Purchase, including the completion by the Issuer of a private offering (the “Offering”) of $1 billion aggregate principal amount of its 3.750% notes due 2030, $500 million aggregate principal amount of its 4.625% notes due 2039 and $1.5 billion aggregate principal amount of its 4.875% notes due 2049 that commenced and priced today, on terms and subject to conditions reasonably satisfactory to Kraft Heinz, as well as other customary conditions.
Kraft Heinz also issued a notice of conditional partial redemption providing for the redemption of $500,000,000 aggregate principal amount of the Issuer’s remaining outstanding 2.800% senior notes due 2020, at a redemption price of 100%, plus the applicable redemption premium and accrued and unpaid interest, if any, to, but not including, October 11, 2019, the expected redemption date (the “Redemption”). The Redemption is also conditioned upon the Issuer’s completion of the Offering.