As the Unilever spinoff approaches, Magnum Ice Cream raises $3.5 billion in bonds

Less than two weeks before the firm completes its spin-off from Unilever and lists in Amsterdam, Magnum Ice Cream reported that it has completed a maiden bond offering of €3 billion ($3.5 billion) that was seven times oversubscribed.

Magnum’s head of supply chain told Reuters this week that the company, which also owns companies like Wall’s and Ben & Jerry’s, is prepared to take on issues like logistics and the growing demand for weight-loss medications when it becomes independent.

Magnum desserts

Magnum is sure that consumers will continue to seek decadent desserts even as healthy eating trends gain popularity and anticipates generating productivity and efficiency savings as it moves into a primarily ice cream business.

With interest rates ranging from 2.75% to 4%, the bond was issued in four tranches of €750 million each, with maturities in 2029, 2031, 2034, and 2037.

The net revenues from the issuance, according to Magnum, will be utilized for «general corporate purposes,» including supporting the Unilever spin-off, which is anticipated to be finished on December 6. On December 8, Magnum shares will go on sale.

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