Pernod Ricard launches a €4.7 billion bond tender tied to a new subordinated debt sale

Pernod Ricard said it has started a tender offer for seven series of outstanding euro notes with a combined face value of €4.7 billion, while also preparing a new issue of undated deeply subordinated debt as the French spirits group seeks to reshape its financing profile.

The company said the buyback offer covers €600 million of 3.750% notes due Sept. 15, 2027; €500 million of 0.500% notes due Oct. 24, 2027; €600 million of 3.250% sustainability-linked notes due Nov. 2, 2028; €1 billion of 1.750% notes due April 8, 2030; €700 million of 3.375% notes due Nov. 7, 2030; €800 million of 3.250% notes due March 3, 2032; and €500 million of 3.750% sustainability-linked notes due Nov. 2, 2032.

In parallel, Pernod Ricard said it intends to issue new euro-denominated undated deeply subordinated notes under its existing EMTN program. The company did not disclose the size or pricing of that planned offering in its announcement, but said the tender offer is tied to the successful completion of the new debt sale.

The group said the purpose of the two-part transaction is to proactively manage its capital structure and its expected redemption profile. In practical terms, the move would allow Pernod Ricard to retire some existing debt coming due over the next several years and replace part of it with a different type of longer-dated financing.

The tender offer opened on Oct. 20 and is scheduled to run until 4 p.m. Paris time on Oct. 27. Pernod Ricard said pricing for the new subordinated notes is expected to be announced before Oct. 27, with the maximum amount it will accept in the offer to be published as soon as reasonably practicable after that. Results of the tender offer are expected on Oct. 28.

The company said six of the seven note lines are subject to a cap. For the October 2027, November 2028, April 2030, November 2030, March 2032, and November 2032 notes, the maximum amount accepted will equal the aggregate principal amount of the new notes minus €600 million, unless Pernod Ricard chooses to increase or reduce that amount at its own discretion.

The September 2027 notes are being handled differently. Pernod Ricard said those notes are not subject to the cap, and that it intends to repurchase all such notes that are validly tendered, provided the new note issue is completed.

The company also said existing bondholders who take part in the offer will have the opportunity to seek priority in the allocation of the new subordinated notes. That structure is commonly used to encourage participation in liability management transactions by giving current investors a route into the replacement security.

The transaction adds to a broader pattern of large consumer groups adjusting debt maturities as borrowing costs and investor demand continue to shape funding decisions in Europe’s bond market. Undated deeply subordinated notes are typically treated differently from senior debt because they sit lower in the capital structure and can extend the maturity profile of a company’s liabilities.

For the beverage industry, the move matters beyond bondholders. Pernod Ricard is one of the world’s largest spirits companies, and changes to its debt schedule can affect how much financial flexibility it has for brand investment, distribution, and other spending decisions. Across wines, beers, and spirits, large producers have been balancing softer demand in some markets with the need to protect margins and maintain room for long-term investment.

Pernod Ricard’s announcement did not provide additional operating guidance or a broader update on trading. It focused on the mechanics of the debt transaction and referred investors to a tender offer memorandum dated Oct. 20 for the detailed terms and conditions.