PepsiCo has put a new $5 billion 364-day credit facility in place, giving the company access to short-term borrowing capacity for general corporate purposes including working capital, capital investments and acquisitions.
The agreement, dated May 22, 2026, establishes an aggregate principal amount of up to $5 billion. The facility runs for 364 days, making it a one-year revolving source of liquidity rather than a long-term debt issue.
Citibank is serving as administrative agent, with JPMorgan Chase and Bank of America as syndication agents. Citibank, JPMorgan Chase and BofA Securities are the joint lead arrangers and joint bookrunners.
The borrowing package is structured to allow PepsiCo and its borrowing subsidiaries to draw funds in dollars or euros. The minimum borrowing size is $10 million for dollar-denominated advances and €10 million for euro-denominated advances. Borrowings must also be made in increments of $1 million for dollars and €1 million for euros.
The agreement gives PepsiCo flexibility in interest-rate structure as well. Dollar borrowings can be tied to a base rate, Term SOFR or other benchmark-linked pricing, while the document also includes provisions for benchmark replacement if market reference rates change.
The facility also allows for borrowing subsidiaries to be designated and later removed through formal designation and termination letters, expanding the pool of entities able to access the credit line. The market has reacted to these announcements by moving the company's shares -0.29% to a price of $148.85. Check out the company's full 8-K submission here.
