By Colin Keatinge and Olga Voitova | Updated on Oct 09, 2026 at 04:35 PM
PepsiCo Inc. returned to Europe’s market for publicly syndicated bonds for the second time this year, raising €1 billion ($1.12 billion) just a day after cutting its profit outlook on mounting costs in North America.
The soda and snack maker’s offering was split between a three-year tranche and a nine-year tranche, each fixed at a size of €500 million, according to a person familiar with the matter who asked not to be identified.
The shorter-dated debt priced at 33 basis points over mid-swaps after initial price talks at around 60, while the longer slice finished at 73 after initial talks in the 105 area, the person said.
The Purchase, New York-based company is borrowing as it navigates weakness in its North American beverage and snack businesses. PepsiCo lowered its earnings growth outlook · on Thursday.
Chief Executive Officer Ramon Laguarta told analysts during an earnings call that the company doesn’t “feel good about the beverage business,” adding that it’s “putting all of the urgency of the business and the focus in improving our performance in soft drinks.” Sales volumes of North American beverages have fallen 3% so far this year, with zero-sugar and flavored options performing better than full-sugar versions.
In February, the company raised €2.5 billion from a four-part bond sale in Europe’s primary market, but it’s stayed away from its home bond market in 2026, according to data compiled by Bloomberg. PepsiCo’s euro deals add to a record boom in so-called reverse Yankee issuance, with Alphabet Inc., Danaher Corp. and Baker Hughes Co. among US borrowers helping push sales above €140 billion this year, the data show.
| Read more: |
|---|
| Danaher Adds to Record Reverse Yankee Supply With M&A Euro Bonds |
| US Firms Baker Hughes, FIS Set to Rouse Euro Company Debt Market |
PepsiCo’s sale Friday, which is expected to be rated A1 by Moody’s Ratings and A+ by S&P Global Ratings, was managed by Deutsche Bank AG and HSBC Holdings Plc.
Debt distribution: PEP US Equity DDIS
Capital structure: PEP US Equity CAST
Related securities: PEP US Equity RELS
Ratings history: PEP US Equity CRPR
This story was produced with the assistance of Bloomberg Automation