As of May 23, 2025, PepsiCo, Inc. has entered into a 364-day credit agreement for up to $5 billion with various lenders. The purpose of this credit agreement is to provide the company and its subsidiaries with access to credit for general corporate purposes, including working capital, capital investments, and acquisitions.
Under the terms of the agreement, certain defined terms and accounting terms have been established. The base rate for the credit agreement is a fluctuating interest rate per annum, which is determined by the highest of the rate announced by Citibank, N.A. as its base rate, the Federal Funds Rate plus 0.50%, and the Term SOFR for a one-month tenor plus 1.00%.
The agreement also includes conditions precedent to effectiveness and lending, representations and warranties of the company, affirmative and negative covenants, events of default, and the role and authority of the administrative agent.
Additionally, the agreement outlines various miscellaneous provisions such as amendments, notices, waivers, costs and expenses, right of set-off, confidentiality, governing law, and execution in counterparts.
The company's request for credit has been met with the willingness of the lenders to provide credit on the terms and conditions set forth in the agreement. This credit agreement will enable PepsiCo, Inc. and its subsidiaries to access up to $5 billion in credit for their ongoing and future corporate needs. Following these announcements, the company's shares moved -0.6%, and are now trading at a price of $129.34. If you want to know more, read the company's complete 8-K report here.
