Cadbury Schweppes has announced that it intends to buy-back up to GBP300m of its outstanding GBP400m 4.875% Guaranteed Notes which are due to be paid in 2010.
The confectioner said that it will pay between GBP0.47-0.49 per share. The purchase price is based on the tender spread range to the 4.75% UK Treasury Gilt due on 7 June 2010 (reference bond). The company added that it might change the amount to be repurchased at any time.
The repurchase will realign the group’s debt maturity profile following the recent sale of its European Beverages division.