Pernod Ricard proposes to repurchase seven bond tranches via a hybrid issuance
The spirits group announced on October 20, 2026, its intention to issue new hybrid bonds of indefinite duration, subordinated on a junior basis, the realization of which is conditional on the repurchase offer. According to the statement, the operation aims, among other things, to "proactively manage the Company's capital structure and its repayment maturity profile".
Seven tranches targeted, maturities from 2027 to 2032
The offer covers bonds maturing between September 15, 2027, and November 2, 2032. It concerns a tranche of €600 million at 3.750% (maturity September 15, 2027), a tranche of €500 million at 0.500% (maturity October 24, 2027), and a tranche of €1 billion at 1.750% (maturity April 8, 2030).
These are supplemented by a tranche of €700 million at 3.375% (maturity November 7, 2030) and a tranche of €800 million at 3.250% (maturity March 3, 2032). Two tranches are sustainability-linked bonds: €600 million at 3.250% (maturity November 2, 2028) and €500 million at 3.750% (maturity November 2, 2032).
The new bonds envisaged would be issued under the company's EMTN program and denominated in euros.
A repurchase cap indexed to the new issuance
The offer is subject to the terms of the offer to purchase memorandum dated the date of announcement. For six of the seven tranches, designated as "Capped Bonds", it is limited to a maximum acceptance amount equal to the total nominal amount of the new bonds reduced by €600 million. The company reserves the right to increase or decrease this cap "in its sole and absolute discretion".
The tranche maturing in September 2027 is not subject to this cap: Pernod Ricard has indicated its intention to repurchase all validly tendered securities, subject to completion of the new issuance. Bondholders also have the possibility to tender their existing bonds and request priority in the allocation of new securities.
The offer runs until October 27, 2026, at 4:00 p.m. Paris time. The pricing of the new bonds is expected to be announced before this date, with the maximum acceptance amount being communicated as soon as reasonably practicable thereafter, and the results of the offer are expected on October 28, 2026.
