LONDON (Reuters) -The Magnum Ice Cream Company on Wednesday said it had completed a 3 billion euro ($3.48 billion) debut bond issue that was oversubscribed seven times, less than two weeks before the
Magnum Ice Cream Secures $3.5 Billion in Bond Issue Pre-Spinoff
LONDON (Reuters) -The Magnum Ice Cream Company on Wednesday said it had completed a 3 billion euro ($3.48 billion) debut bond issue that was oversubscribed seven times, less than two weeks before the company will finalise a spinoff from Unilever and list in Amsterdam.
Magnum, which also includes brands such as Wall's and Ben & Jerry's, is ready to tackle challenges from logistics to the rising popularity of weight-loss drugs when it goes solo, its supply chain head told Reuters this week.
Magnum expects to make productivity and efficiency savings as it transitions to a pure-play ice cream business and is betting on consumers continuing to crave indulgent snacks even as healthy eating trends gain prominence.
"The level of interest shown by the market was fantastic, with the order book being oversubscribed by over seven times," CFO Abhijit Bhattacharya said in a statement.
The bond was issued across four tranches of 750 million euros each, Magnum said, due in 2029, 2031, 2034, and 2037, at interest rates ranging from 2.75% to 4%.
Magnum said the issue's net proceeds would be used for "general corporate purposes," including facilitating the demerger from Unilever, which is due to be completed on December 6. Magnum's shares will begin trading on December 8.
($1 = 0.8625 euros)
(Reporting by Alexander MarrowEditing by Rod Nickel)
