CHICAGO — Fitch Ratings has assigned a “BBB-“ rating to Kraft Foods Inc.’s $800 million senior unsecured floating rate notes due July 10, 2013. Net proceeds from the debt issuance are expected to be used for general corporate purposes, including debt repayment. According to Fitch, the notes contain a special mandatory redemption feature requiring Kraft to redeem all of the notes five business days prior to the date it spins off its North American Grocery Business, as well as a Change of Control Triggering Event. Upon the occurrence of both a Change of Control and rating downgrades below investment grade, unless Kraft has redeemed the notes, note holders can make Kraft repurchase all or part of their notes at a price equal to 101% of the aggregate principal amount of the notes repurchased plus accrued and unpaid interest, if any.
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