Pernod Ricard raises €1.5B in debut hybrid bonds to cut debt load
What's the deal? Pernod RicardDealroom has a profile for this one. Try Dealroom → has completed a €1.5 billion hybrid bond issuance, split into two €750 million perpetual, deeply subordinated tranches priced at coupons of 5.625% and 6.125%. The spirits group — owner of AbsolutDealroom has a profile for this one. Try Dealroom →, JamesonDealroom has a profile for this one. Try Dealroom →, and Martell — set the terms on October 22, 2026, with the notes to trade on Euronext Paris.
Why now? Pernod Ricard will use the proceeds for general corporate purposes, including a concurrent tender offer on seven existing bond series maturing between September 2027 and November 2032. It is a refinancing and balance-sheet move, not fresh growth capital.
What's the endgame? Ratings agencies count hybrid notes partly as equity, which helps the group manage leverage. S&P estimates the transaction would lower adjusted debt-to-EBITDA to about 4.0x in fiscal 2027, down from 4.6x at fiscal 2026 year-end.
By the numbers: Pernod Ricard reported consolidated sales of €9,404 million in fiscal 2026. Its senior debt is rated Baa1 by Moody's and BBB+ by Standard & Poor's — both on negative outlook — while the new hybrid bonds carry lower ratings of Baa3 and BBB-.
What could go wrong? The relatively high coupons show that this capital-structure relief comes at a cost. With both agencies flagging a negative outlook on senior debt, the issuance signals rising debt concerns the group is working to contain.
The signal: The €1.5 billion raise ranks above the 95th percentile for post-IPO debt rounds among French food companies, underlining the scale of the move. For a CAC 40 blue-chip, tapping the hybrid market to ease maturities and leverage shows even large consumer groups are reworking their balance sheets as debt costs bite.
Read more: wallstreet-online.de
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