General Mills issues EUR 1.7 billion in subordinated notes due 2056
General Mills Inc. (NYSE: GIS) announced the offering of €1.7 billion in junior subordinated notes with a maturity date of July 16, 2056.
The offering consists of €1 billion of 4.750% Series A notes and €700 million of 5.250% Series B notes. Both series feature fixed-to-fixed reset rate structures with interest rate adjustments scheduled at five-year intervals.
The Series A notes will maintain their 4.750% rate until July 16, 2031, when the rate will reset based on the Five-Year Swap Rate plus an initial margin of 202.4 basis points. The Series B notes carry a 5.250% rate until July 16, 2034, with subsequent resets using the same swap rate plus an initial margin of 239.0 basis points.
Both note series include step-up provisions that add 25 basis points to the margin beginning five years after their respective first reset dates, and an additional 75 basis points starting 20 years after the first reset dates.
Interest payments are scheduled annually on July 16, beginning in 2026. General Mills retains the right to defer interest payments for up to 10 consecutive years per deferral period, with deferred payments accumulating additional interest at the applicable rate.
The company may redeem the notes at any time according to terms outlined in the prospectus supplement. The notes are classified as junior subordinated debt in General Mills' capital structure.