Pernod Ricard Prices €1.5 Billion Hybrid Bond Issue to Support Corporate Refinancing

French spirits group Pernod Ricard has announced the pricing of a €1.5 billion hybrid bond issuance across two equal tranches, taking advantage of favourable market conditions and strong investor demand. Announced on 22 October 2026, the transaction consists of undated, deeply subordinated fixed-rate resettable notes, with €750 million allocated to each tranche. The issuance is intended to support the company's general corporate financing requirements, including the refinancing of existing debt.

 

The first tranche comprises €750 million in perpetual notes with an initial non-call period of 5.25 years, carrying a coupon of 5.625% and a yield of 5.75%. The second €750 million tranche has an initial non-call period of eight years, with a coupon of 6.125% and a yield of 6.25%. Both tranches are scheduled to settle on 28 October 2026. The hybrid structure combines characteristics of debt and equity, allowing Pernod Ricard to raise long-term capital through instruments without a fixed maturity date.

 

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Pernod Ricard plans to use the net proceeds for general corporate purposes, including financing a concurrent tender offer covering seven existing bond series. These notes mature between September 2027 and November 2032. The transaction will allow the company to manage its debt maturity profile and refinance portions of its outstanding borrowings. The issuance was placed with qualified investors, and Pernod Ricard intends to apply for the bonds to be admitted to trading on Euronext Paris.

 

The new hybrid notes have received credit ratings of Baa3 from Moody's and BBB- from S&P Global Ratings. Pernod Ricard's long-term senior debt is rated Baa1 by Moody's and BBB+ by S&P, both carrying negative outlooks. While the transaction represents a substantial capital markets financing exercise, the announcement does not designate the bonds as green or sustainability-linked instruments, nor does it identify environmental projects as recipients of the proceeds.

 

Source: Pernod Ricard