Coca Cola Amatil Limited (CCA)
Coca-Cola Amatil (Aust) Pty Ltd
A$2 billion Debt Securities Issuance Programme dated 5 November 2012
Dated 9 November 2012
Nature of the Bonds
The bonds will be direct, unsubordinated and unsecured obligations of the Issuer and will rank at least equally with all other direct unsubordinated and unsecured obligations of the Issuer, except obligations mandatorily preferred by law.
13 November 2012
4.25% percent per annum, payable semi-annually (in two coupons of 2.125%) in arrears, on 13 May and 13 November in each year, including the Maturity Date.
Repayment at Par on the Maturity Date
On the Maturity Date, bondholders are scheduled to receive the Face Value and the final Coupon Payment for the last Interest Period.
Key benefits include:
- interest paid quarterly in arrears;
- interest paid is floating rate
- interest paid as 100% cash;
- interest is not deferrable nor are interest payments discretionary;
- rank equally with all other senior and unsecured creditors of the Issuer.
The value of an investment in CCA Bonds may fluctuate due to various factors, including investor perceptions, worldwide economic conditions, interest rates, debt market conditions and factors that may affect CCA’s financial performance. The following risks may also affect an investment in CCA Bonds:
- Credit Risks - associated with the Issuer and any Guarantors;
- Liquidity Risk - An active secondary market in respect of the Bonds may never be established or may be illiquid and this would adversely affect the value at which an investor could sell the Bonds;
- Interest Rate Risks – bondholders may suffer unforeseen losses due to fluctuations in interest rates;
- Group Risks - The Coca-Cola Company is a significant relationship for CCA and an adverse change in that relationship could have a material adverse effect on CCA’s financial performance
- Litigation Risks - Risks relating to litigation and regulatory actions;
- Competition Risk – CCA operates in highly competitive markets which can impact on CCA’s revenues and profitability;
- Default Risk - if an event of default occurs under the Bonds, or CCA fails to perform any obligation in relation to the Bonds, such event or failure may impact on the value of an investment in the Bonds, the transferability of the Bonds and the ability of a holder to recover amounts due under the Bonds.
The Issuer and Guarantor, and any subsidiaries, will not create any Security Interest over any of its assets, with some limited exceptions.
Early Redemption by Issuer
Yes, for tax reasons
Events of Default
Events of Default include:
- Payment Default: Applicable with a75 day cure period for interest and principal payments;
- Breach of other obligations: Applicable, with a 30 day cure period or the Issuer has demonstrated within 20 days that a failure is immaterial or such failure can be overcome by taking reasonable steps to do so within a reasonable time;
- Insolvency / Winding Up: Applicable
- Enforcement against assets: Applicable, with a cure period of 21 days
- Enforcement of security: Applicable, with a cure period of 21 days
- Unlawfulness: it is unlawful for the Issuer to perform or comply with any of its obligations under the bonds
- Bottlers Agreement Terminated: Any Bottlers Agreement entered into by the Issuer or a subsidiary is terminated, unless such termination will not have a material adverse effect on the consolidated operating profit before income tax and significant items of the Issuer and its consolidated subsidiaries. Where a Bottlers Agreement is an agreement with The Coca-Cola Company or a related body corporate granting the, inter alia, the right to manufacture and distribute soft drink products bearing trademarks owned by The Coca-Cola Company or any related body corporate.
- Cross default: Yes. Threshold amount is US$10,000,000