Mars, Incorporated completes $2.5 billion bond offering marking an important milestone in its sustainability efforts to tackle global environmental and social threats
Mars, Incorporated announced today that it has successfully completed its previously announced offering of $2.5 billion of senior notes, consisting of $1.0 billion in aggregate principal amount of 4.550% Senior Notes due 2028 (the “2028 Notes”), $500 million in aggregate principal amount of 4.650% Senior Notes due 2031 (the “sustainability Notes”) and $1.0 billion in aggregate principal amount of 4.750% Senior Notes due 2033 (the “2033 Notes” and, together with the 2028 Notes and the Sustainability Notes, the “Notes”). The Notes are guaranteed on a joint and several basis by Wm. Wrigley Jr. Company and New Uno Holdings Corporation.
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With the increasing impacts of climate change, Mars is taking critical action today through financial investments and commitments to tackle important environmental and social issues facing the planet and society. The new $500 million Sustainability Notes offering is the latest financial investment from Mars to help create a better world tomorrow in which the planet, its people and pets can thrive.
The Company intends to use the net proceeds from the offering of the 2028 Notes and the 2033 Notes for general corporate purposes, which may include the repayment of the Company’s outstanding borrowings under its revolving credit facility.
The Company has committed to use the net proceeds from the offering of the Sustainability Notes to finance or refinance, in whole or in part, one or more new and/or existing Eligible Projects to address important environmental and social issues in accordance with the Company’s Sustainability Financing Framework (the “Framework”). “Eligible Projects” include projects across key areas of our sustainability strategy, including: renewable energy; energy efficiency; sustainable water and wastewater management; pollution prevention and control; green buildings; environmentally sustainable management of living natural resources and land use; carbon sequestration; circular economy, adapted products, production technologies and processes; socioeconomic advancement and empowerment; and access to essential financial services. These projects will help the Company on the goal the Company has set to achieve net zero emissions by 2050 and addressing other important environmental and social issues.
This debut Sustainability Notes offering marks an important milestone in our sustainability efforts and further aligns our financing strategy with Mars’ Sustainable in a Generation Plan.
Claus Aagaard, Chief Financial Officer at Mars, Incorporated commented, “The situation facing our planet is urgent. That means that now more than ever, businesses must stand for more than just maximizing profit and take real action to avoid the worst impacts of climate change, and to protect the future for coming generations. Finance is at the heart of this pursuit: we cannot uncouple sustainability from financial performance, rather the two are mutually reinforcing. We are proud to have today completed this bond offering, which will help us to meet our science-based targets set as part of our Sustainable in a Generation Plan and help finance other projects that contribute to a more sustainable future.”
The Sustainable in a Generation Plan is built on three pillars underlying the Company’s sustainability strategy:
- Healthy Planet (including Transforming Packaging): Mars is committed to reducing the greenhouse gas emissions (“GHG”) from its supply chains through investments in renewable energy, water reduction, working to eliminate deforestation in our supply chain and evolving product packaging to support a circular economy where packaging material never becomes waste. Mars has aligned its GHG reduction path with the most ambitious aim of the Paris Agreement to limit global temperature rise to 1.5º C. The Company has set targets to reduce total GHG emissions across its value chain by 27% by 2025 and to achieve net zero emissions by 2050 (compared with a 2015 baseline).
- Thriving People: Mars focuses on meaningfully improving the lives of one million people across our value chain to enable them to thrive. To do this, we are engaging a network of partners from NGOs to governments and focusing on three areas where we believe we can drive meaningful change — increasing income, respecting human rights and unlocking opportunities for women.
- Nourishing Wellbeing: Good nutrition, health and wellbeing are essential for billions of people and pets around the world to lead happier, healthier lives. Mars uses its global reach to support the wellness of Mars Associates, as well as enhance its product quality and nutrition and providing access to healthy meals. We do this by helping our workforce to thrive, by enabling consumers to make informed choices for themselves, their families and their pets, and by working to make safe food available to all.
The Framework is in alignment with the International Capital Markets Association Green Bond Principles (updated as of June 2022), Social Bond Principles (updated as of June 2022), Sustainability Bond Guidelines (updated as of June 2021) and the Loan Syndications & Trading Association Green Loan Principles (updated as of February 2023) (collectively, the “Principles”). S&P Global Ratings, an independent ratings provider, has provided a Second-Party Opinion on the alignment of the Framework with the Principles.
The Notes were offered in a private transaction in reliance upon an exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), in the United States only to investors reasonably believed to be “qualified institutional buyers,” as that term is defined in Rule 144A under the Securities Act, or to non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act. The Notes have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements.
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