By Colin Keatinge and Olga Voitova | Updated on Oct 09, 2026 at 10:02 AM
PepsiCo Inc. entered Europe’s public bond market on Friday with a €1 billion ($1.12 billion) two-part deal, a day after cutting its profit outlook on mounting costs in North America.
The deal is split between a three-year tranche and a nine-year tranche, each fixed at a size of €500 million. The initial pricing level for the shorter part is around 60 basis points above mid-swaps while the longer slice of debt is being marketed at around 105 basis points, according to a person familiar with the matter who asked not to be identified.
PepsiCo’s debt raise comes as it navigates a challenging environment in North America. The company lowered its earnings growth outlook · on Thursday, citing weakness in both its beverage and snack businesses.
Chief Executive Officer Ramon Laguarta said on a call with analysts that the company doesn’t “feel good about the beverage business,” adding that it is “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.
PepsiCo is turning to Europe for the second time this year, while staying away from its home market, according to data compiled by Bloomberg. The company’s latest euro deal adds 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 shows.
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PepsiCo’s sale, which is being managed by Deutsche Bank AG and HSBC Holdings Plc, is expected to price later today.
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