KHC · 10-Q · 2026Q2 · Full report
Debt Position
Kraft Heinz Co · 2026-08-05 · Importance 74 · Surprise 58 · From source text
Cash and cash equivalents totaled $2.4 billion at June 27, 2026, including $1.1 billion held by international subsidiaries. Long-term debt declined to $19.0 billion from $21.2 billion at December 27, 2025 after repaying $1.9 billion of notes, tendering approximately $1.4 billion of 2046 Notes, and issuing 2026 Notes. KHFC issued €500 million of 3.500% senior notes due 2031 and €500 million of 3.950% senior notes due 2034 during the second quarter. The company had no commercial paper outstanding, no borrowings under its $4.0 billion revolving facility due 2031, and held BBB negative outlook ratings from S&P and Fitch and Baa2 ratings under review for downgrade from Moody’s.
Key facts
- The decrease in long-term debt was primarily related to repayment of $1.9 billion senior notes due June 2026, purchase of approximately $1.4 billion aggregate principal amount of the 2046 Notes tendered in May 2026, and changes in foreign currency exchange rates, partially offset by issuance of the 2026 Notes. source
- KHFC issued 500 million euro aggregate principal amount of 3.500% senior notes due May 2031 and 500 million euro aggregate principal amount of 3.950% senior notes due May 2034 in the second quarter of 2026. source
- In July 2026 the company partially redeemed $1 billion aggregate principal amount of the 3.875% Senior Notes due May 2027, resulting in approximately $350 million aggregate principal amount of senior notes maturing in May 2027. source
- The company repaid $1.9 billion in aggregate principal amount of senior notes that matured in the period, purchased approximately $1.4 billion aggregate principal amount of the 2046 Notes tendered in the Tender Offer, and issued the 2026 Notes during Q2 2026. source
- Long-term debt including current portion was $19.0 billion at June 27, 2026 and $21.2 billion at December 27, 2025. source
- The company used available-for-sale securities to repay the senior notes that matured in June 2026 and used net proceeds from the 2026 Notes to fund the Tender Offer. source
- The Parent Guarantor fully and unconditionally guarantees all KHFC Senior Notes on a senior unsecured basis and none of the Parent Guarantor's subsidiaries guarantee the KHFC Senior Notes. source
- The Guarantee is the Parent Guarantor’s senior unsecured obligation and is pari passu in right of payment with all of the Parent Guarantor’s existing and future senior indebtedness. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | realized | -4.1% | Repayments of long-term debt for the six months ended June 27, 2026: $(2,981) million. |
| liability | positive | realized | +4.1% | Repayments of long-term debt for the six months ended June 27, 2026: $(2,981) million. |
| liability | negative | realized | -3.0% | Long-term debt including current portion was $19.0 billion at June 27, 2026 and $21.2 billion at December 27, 2025. |
| liability | positive | realized | +2.5% | Non-current liabilities for the Obligor Group were $19,409 million at June 27, 2026 and $21,260 million at December 27, 2025. |
| cash | positive | realized | +1.6% | Proceeds from issuance of long-term debt for the six months ended June 27, 2026: $1,152 million. |
| liability | negative | realized | -1.6% | Proceeds from issuance of long-term debt for the six months ended June 27, 2026: $1,152 million. |
| liability | negative | committed | -1.2% | In July 2026 the company partially redeemed $1 billion aggregate principal amount of the 3.875% Senior Notes due May 2027, resulting in… |
| liability | negative | realized | — | KHFC issued 500 million euro aggregate principal amount of 3.500% senior notes due May 2031 and 500 million euro aggregate principal… |
| liability | negative | contingent | — | The Parent Guarantor fully and unconditionally guarantees all KHFC Senior Notes on a senior unsecured basis and none of the Parent… |
| net_income | negative | contingent | — | The company's long-term debt was rated BBB with a negative outlook from S&P Global Ratings and Fitch Ratings, and Baa2 with ratings under… |