Mars, Incorporated Announces Pricing of $26 Billion of Senior Notes
Mars, Incorporated has announced the pricing of a $26 billion private senior notes offering, structured across eight different tranches with varying maturities from 2027 to 2065. The notes carry interest rates ranging from 4.450% to 5.800%, with interest payable semi-annually.
The offering is expected to close around March 12, 2025. The proceeds will fund Mars' pending acquisition of Kellanova (NYSE: K). Upon completion of the acquisition, Kellanova is expected to guarantee the notes on a senior unsecured basis. If the acquisition is not completed by August 20, 2026, or if the merger agreement is terminated earlier, the notes will be subject to a special mandatory redemption at 101% of principal plus accrued interest.
Mars, Incorporated ha annunciato il prezzo di un
L'emissione dovrebbe chiudersi intorno al 12 marzo 2025. I proventi finanzieranno l'acquisizione in sospeso di Mars di Kellanova (NYSE: K). Al termine dell'acquisizione, Kellanova dovrebbe garantire le note su base senior non garantita. Se l'acquisizione non viene completata entro il 20 agosto 2026, o se l'accordo di fusione viene risolto prima, le note saranno soggette a un rimborso obbligatorio speciale al 101% del capitale pi霉 gli interessi maturati.
Mars, Incorporated ha anunciado el precio de una emisi贸n privada de notas senior de 26 mil millones de d贸lares, estructurada en ocho tramos diferentes con vencimientos que van desde 2027 hasta 2065. Las notas tienen tasas de inter茅s que oscilan entre el 4.450% y el 5.800%, con intereses pagaderos semestralmente.
Se espera que la emisi贸n cierre alrededor del 12 de marzo de 2025. Los ingresos financiar谩n la adquisici贸n pendiente de Mars de Kellanova (NYSE: K). Una vez completada la adquisici贸n, se espera que Kellanova garantice las notas en una base senior no garantizada. Si la adquisici贸n no se completa antes del 20 de agosto de 2026, o si el acuerdo de fusi贸n se rescinde antes, las notas estar谩n sujetas a un reembolso obligatorio especial del 101% del principal m谩s los intereses acumulados.
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Mars, Incorporated a annonc茅 le prix d'une 茅mission priv茅e de billets senior de 26 milliards de dollars, structur茅e en huit tranches diff茅rentes avec des 茅ch茅ances variant de 2027 脿 2065. Les billets portent des taux d'int茅r锚t allant de 4,450 % 脿 5,800 %, avec des int茅r锚ts payables semestriellement.
L'茅mission devrait se cl么turer autour du 12 mars 2025. Les recettes financeront l'acquisition en attente de Mars de Kellanova (NYSE: K). Une fois l'acquisition termin茅e, Kellanova devrait garantir les billets sur une base senior non s茅curis茅e. Si l'acquisition n'est pas finalis茅e d'ici le 20 ao没t 2026, ou si l'accord de fusion est r茅sili茅 plus t么t, les billets seront soumis 脿 un remboursement obligatoire sp茅cial de 101 % du principal plus les int茅r锚ts accumul茅s.
Mars, Incorporated hat den Preis f眉r ein Privatplatzierungsangebot von Senior Notes 眉ber 26 Milliarden Dollar bekannt gegeben, das in acht verschiedene Tranchen mit unterschiedlichen Laufzeiten von 2027 bis 2065 strukturiert ist. Die Notes haben Zinss盲tze, die von 4,450% bis 5,800% reichen, mit halbj盲hrlicher Zinszahlung.
Das Angebot soll voraussichtlich um den 12. M盲rz 2025 schlie脽en. Die Erl枚se werden die bevorstehende 脺bernahme von Kellanova (NYSE: K) durch Mars finanzieren. Nach Abschluss der 脺bernahme wird erwartet, dass Kellanova die Notes auf unbesicherter Senior-Basis garantiert. Sollte die 脺bernahme bis zum 20. August 2026 nicht abgeschlossen sein oder wenn der Fusionsvertrag vorher beendet wird, unterliegen die Notes einer speziellen obligatorischen R眉ckzahlung von 101% des Nennbetrags zuz眉glich aufgelaufener Zinsen.
- Large-scale strategic acquisition financing secured
- Structured debt with varied maturities (2027-2065) reducing refinancing risk
- Senior guarantee from Kellanova post-acquisition enhancing note security
- Significant debt burden of $26 billion added to balance sheet
- Mandatory redemption risk if acquisition fails
- Higher interest expense with rates up to 5.800%
Insights
Mars's $26 billion senior notes offering represents one of the largest corporate debt issuances in recent memory, structured across eight tranches with maturities spanning from 2027 to 2065. The interest rate ladder鈥攔anging from
The company has strategically laddered these maturities to manage refinancing risk, with concentration in the 2030 (
This private placement to qualified institutional buyers indicates strong demand among sophisticated investors despite the size of the offering. The post-acquisition guarantee from Kellanova will effectively place these notes on equal footing with Kellanova's existing debt, streamlining the combined entity's capital structure.
For context, the pricing appears reasonable in the current interest rate environment. The structure suggests Mars is balancing the need for acquisition financing with prudent long-term debt management, spreading repayment obligations across four decades rather than concentrating maturities in the near term.
The successful pricing of
For Kellanova (K) shareholders, this announcement is distinctly positive as it confirms Mars's commitment and financial capacity to execute the transaction. The extended redemption deadline (August 2026) provides ample runway for regulatory review while demonstrating Mars's confidence in eventually securing approvals.
Strategic rationale appears strong as this acquisition would significantly diversify Mars beyond its core confectionery and pet care businesses into Kellanova's breakfast foods and snacks portfolio. Mars is demonstrating considerable conviction by extending debt maturities out to 2065, indicating long-term strategic value in Kellanova's brands and market position.
While acquisition terms weren't disclosed in this release, the size of the debt offering suggests a full valuation for Kellanova. The financing structure鈥攑rimarily through debt rather than equity鈥攁ligns with Mars's status as a privately-held company, allowing them to maintain existing ownership structure while executing a major acquisition. The pending regulatory review remains the final significant hurdle before transaction close.
The Company intends to use the net proceeds from the offering of the Notes, together with other financing sources and cash on hand, to fund the pending acquisition (the "Acquisition") of Kellanova, a
On the Issue Date, the Notes will not be guaranteed by any of the Company's subsidiaries. Upon the consummation of the Acquisition, Kellanova is expected to guarantee the Notes on a senior unsecured basis.
The Notes are being offered in a private transaction in reliance upon an exemption from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"), in
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of any of the Notes in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
This communication contains "forward-looking statements" which reflect management's expectations regarding the Company's future growth, results of operations, operational and financial performance and business prospects and opportunities. These statements or disclosures may discuss goals, intentions and expectations as to future trends, plans, events, results of operations or financial condition or state other information relating to the Company, based on current beliefs of management as well as assumptions made by, and information currently available to, the Company. Forward-looking statements generally will be accompanied by words such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "may," "possible," "potential," "predict," "project" or other similar words, phrases or expressions. Although the Company believes these forward-looking statements are reasonable, they are based upon a number of assumptions concerning future conditions, any or all of which may ultimately prove to be inaccurate. Forward-looking statements involve a number of risks and uncertainties that could cause actual results to vary. Such forward-looking statements may include, among other things, statements about the offering of the Notes and about the Acquisition. All forward-looking statements in this communication apply only as of the date made and are expressly qualified in their entirety by this cautionary statement. Except as otherwise required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
Contact:聽Kelly Frailey,聽[email protected]
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SOURCE Mars, Incorporated
FAQ
What is the total value of Mars' senior notes offering for Kellanova (K) acquisition?
What happens to Mars' notes if the Kellanova (K) acquisition fails?
What are the interest rates for Mars' senior notes for Kellanova (K) purchase?
When will Mars' senior notes for Kellanova (K) acquisition begin paying interest?
