PepsiCo expects to close bottler buyouts by end of the 1st-qtr, plans related $4B debt offer

PepsiCo expects to close bottler deals in 1Q

PURCHASE, N.Y. — PepsiCo Inc. said Monday it expects to close on the $7.8 billion buyout of its two biggest bottlers by the end of the first quarter and avoid further questions from the Federal Trade Commission.

“PepsiCo believes that it can consummate its acquisitions of Pepsi Bottling Group and PepsiAmericas by the end of the first quarter of 2010 without a ‘Second Request’ being issued by the Federal Trade Commission,” PepsiCo said in a regulatory filing.

The world’s second-biggest soft drink seller is buying the shares it does not already own of Pepsi Bottling Group Inc. and PepsiAmericas Inc.

In early November, it withdrew paperwork from the FTC to give regulators more time to review the deal. Monday, it said the deal could move forward “without the imposition of any remedy” that would hurt the deal.

It still must file paperwork with the FTC that’s required by the Hart-Scott-Rudino Antitrust Improvements Act of 1976 and with the Securities and Exchange Commission under its rules.

PepsiCo also plans to issue $4 billion in debt securities to fund part of the purchase price as well as related fees, a spokesman said Monday.

If one or both deals don’t close, the company plans to use the proceeds for general purposes, including acquisitions, capital expenditures, refinancing debt or buying back shares.

PepsiCo, based in Purchase, N.Y., is second to the Coca-Cola Co. in soda sales worldwide. PepsiCo also owns the Frito-Lay snacks business and such brands as Quaker, Tropicana and Gatorade.

The company’s shares fell 8 cents to $60.69 in late afternoon trading.