The Hershey Co. said today that it will sell notes at current, low interest rates to replace $150 million worth of notes due in 2012 that pay 6.95 percent interest annually.
The older notes will be redeemed, the candy company said, and the new notes will mature in 2020.
The company, in a Securities and Exchange Commission filing, did not set the interest rate on the new notes. But a similar 10-year Treasury note currently yields about 3.16 percent, and a corporate note typically might sell for up to 1 percentage point more than government debt.
The total amount of the sale may be up to $350 million, with any proceeds above what is needed to redeem the older notes to be used for general corporate purposes, Bloomberg News reported. - Paul Schweizer