PEPSICO INCPEP
PEPSICO INC Debt Disclosure
Debt Obligations
The following table summarizes our debt obligations:
2025(a) | 2024(a) | ||||||||||
Short-term debt obligations (b) | |||||||||||
| Current maturities of long-term debt | $ | 4,030 | $ | 4,004 | |||||||
Commercial paper (3.8% and 4.5%) | 2,641 | 2,818 | |||||||||
| Other borrowings | 190 | 260 | |||||||||
| $ | 6,861 | $ | 7,082 | ||||||||
Long-term debt obligations (b) | |||||||||||
Notes due 2025 (3.2%) | $ | — | $ | 3,999 | |||||||
Notes due 2026 (3.6% and 3.7%) | 4,003 | 3,941 | |||||||||
Notes due 2027 (3.2% and 3.1%) | 3,933 | 3,370 | |||||||||
Notes due 2028 (2.4% and 2.1%) | 4,203 | 3,240 | |||||||||
Notes due 2029 (4.3% and 4.6%) | 4,043 | 3,239 | |||||||||
Notes due 2030 (3.2% and 2.6%) | 4,171 | 2,472 | |||||||||
Notes due 2031-2060 (3.4% and 3.2%) | 25,956 | 20,928 | |||||||||
| Other, due 2025-2042 | 42 | 39 | |||||||||
| 46,351 | 41,228 | ||||||||||
| Less: current maturities of long-term debt obligations | 4,030 | 4,004 | |||||||||
| Total | $ | 42,321 | $ | 37,224 | |||||||
(a)Amounts are shown net of unamortized net discounts of $224 million and $267 million for 2025 and 2024, respectively.
(b)The interest rates presented reflect weighted-average effective interest rates at year-end. Certain of our fixed rate indebtedness have been swapped to floating rates through the use of interest rate derivative instruments. See Note 9 for further information regarding our interest rate swap contracts.
As of December 27, 2025 and December 28, 2024, our international debt of $272 million and $325 million, respectively, was related to borrowings from external parties, including various lines of credit. These lines of credit are subject to normal banking terms and conditions and are fully committed at least to the extent of our borrowings.
In 2025, we issued the following senior notes:
| Interest Rate | Maturity Date | Principal Amount(a) | |||||||||||||||
| 4.400 | % | February 2027 | $ | 500 | |||||||||||||
| 4.450 | % | February 2028 | $ | 750 | |||||||||||||
| 4.600 | % | February 2030 | $ | 1,000 | |||||||||||||
| 5.000 | % | February 2035 | $ | 1,250 | |||||||||||||
| 4.100 | % | January 2029 | $ | 750 | |||||||||||||
| 4.300 | % | July 2030 | $ | 650 | |||||||||||||
| 4.650 | % | July 2032 | $ | 850 | |||||||||||||
| 5.000 | % | July 2035 | $ | 1,250 | |||||||||||||
| 3.450 | % | July 2037 | € | 500 | (b) | ||||||||||||
| 4.050 | % | July 2055 | € | 500 | (b) | ||||||||||||
(a)Excludes debt issuance costs, discounts and premiums.
(b)These notes, issued in euros, were designated as net investment hedges to partially offset the effects of foreign currency on our investments in certain of our foreign subsidiaries.
The net proceeds from the issuances of the above notes were used for general corporate purposes, including the repayment of commercial paper.
In 2025, we entered into a new five-year unsecured revolving credit agreement (2025 Five-Year Credit Agreement), which expires on May 23, 2030. The 2025 Five-Year Credit Agreement enables us and our borrowing subsidiaries to borrow up to $5.0 billion in U.S. dollars and/or euros, including a $0.75 billion swing line subfacility for euro-denominated borrowings permitted to be borrowed on a same-day basis, subject to customary terms and conditions. We may request that commitments under this agreement be increased up to $5.75 billion (or the equivalent amount in euros). Additionally, we may, up to two times during the term of the 2025 Five-Year Credit Agreement, request renewal of the agreement for an additional one-year period. The 2025 Five-Year Credit Agreement replaced our $5.0 billion five-year credit agreement, dated as of May 24, 2024.
Also in 2025, we entered into a new 364-day unsecured revolving credit agreement (2025 364-Day Credit Agreement), which expires on May 22, 2026. The 2025 364-Day Credit Agreement enables us and our borrowing subsidiaries to borrow up to $5.0 billion in U.S. dollars and/or euros, subject to customary terms and conditions. We may request that commitments under this agreement be increased up to $5.75 billion (or the equivalent amount in euros). We may request renewal of this facility for an additional 364-day period or convert any amounts outstanding into a term loan for a period of up to one year, which term loan would mature no later than the anniversary of the then effective termination date. The 2025 364-Day Credit Agreement replaced our $5.0 billion 364-day credit agreement, dated as of May 24, 2024.
Funds borrowed under the 2025 Five-Year Credit Agreement and the 2025 364-Day Credit Agreement may be used for general corporate purposes. Subject to certain conditions, we may borrow, prepay and reborrow amounts under these agreements. As of December 27, 2025, there were no outstanding borrowings under the 2025 Five-Year Credit Agreement or the 2025 364-Day Credit Agreement.
In 2023, we discharged via legal defeasance $94 million outstanding principal amount of certain notes originally issued by our subsidiary, The Quaker Oats Company, following the deposit of $102 million of U.S. government securities with the Bank of New York Mellon, as trustee, in the fourth quarter of 2022.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 3, 2026 | Showing above |
| 2024 | Feb 4, 2025 | |
| 2023 | Feb 9, 2024 | |
| 2022 | Feb 9, 2023 | |
| 2021 | Feb 10, 2022 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.