The Hershey Company (HSY, Financial) has announced a significant financial maneuver with the issuance of $2 billion in aggregate principal amount of notes. This strategic move, detailed in a recent Form 8-K filing, involves the sale of four tranches of notes: $500 million of 4.550% Notes due 2028, $500 million of 4.750% Notes due 2030, $500 million of 4.950% Notes due 2032, and $500 million of 5.100% Notes due 2035. The offering is being conducted under Hershey's existing Registration Statement on Form S-3.
The proceeds from this offering are earmarked for repaying Hershey's outstanding 0.900% Senior Notes due 2025 and 3.200% Senior Notes due 2025, as well as certain short-term commercial paper borrowings. This refinancing strategy aims to optimize Hershey's debt profile by addressing upcoming maturities and supporting general corporate purposes.
The transaction is being managed by a consortium of underwriters, including BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC, and U.S. Bancorp Investments, Inc. These underwriters have agreed to purchase the notes from Hershey, facilitating the company's strategic financial objectives.
This move underscores Hershey's proactive approach to managing its financial obligations and ensuring liquidity for future growth initiatives. The company continues to leverage favorable market conditions to strengthen its balance sheet and support its long-term strategic goals.
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