PRICING SUPPLEMENT NUMBER 16 Filed Under Rule (TO PROSPECTUS DATED NOVEMBER 28, 1995) 424(b)(2) and 424(c) CUSIP 71345L EE-4 File No. 33-64243 $25,000,000 PEPSICO, INC. 6.50% CALLABLE DEBT SECURITIES DUE MAY 22, 2013 Interest Payable Monthly ----------------------- Underwriter: Smith Barney Inc. Initial Offering Price: 100.00% Underwriter's Discount: 0% Currency: U. S. Dollars Date of Issue: May 22, 1998 Issuance form: Book entry Scheduled Maturity Date: May 22, 2013 Interest Rate: 6.50% per annum Day count basis: 30/360 Interest Accrual Date: May 22, 1998 or the most recent date for which interest has been paid or provided for, as the case may be. Interest will accrue from each Interest Accrual Date to but excluding the next succeeding Interest Payment Date. Interest Payment Dates: Monthly on the 22nd of each month, commencing June 22, 1998, and ending on the Scheduled Maturity Date or an earlier Optional Redemption Date. Principal Payment Date: Scheduled Maturity Date, or an earlier Optional Redemption Date. Business Days: New York Calculation Agent: PepsiCo, Inc. Optional Redemption Dates: The 6.50% Callable Debt Securities Due May 22, 2013, (the "Notes") may be redeemed, in whole but not in part, at the option of PepsiCo, at 100% of the principal amount thereof, plus accrued interest to the date of such redemption, on May 22, 2000 or any subsequent Interest Payment Date prior to the Scheduled Maturity Date, upon 30 days written notice by PepsiCo to the Trustee under the Indenture dated as of December 14, 1994 for the benefit of the holders of such Notes. Option to elect prepayment: None Sinking fund: Not applicable Settlement Date: May 22, 1998 The Notes will be purchased by the Underwriter at 100.00% of their principal amount, and will be offered to the public at varying prices to be determined by the Underwriter based on prevailing market prices at the time of sale. For U.S. federal income tax purposes, the Notes will be treated as Fixed Rate Debt Securities, issued without OID. This treatment is consistent with the applicable provisions of the Internal Revenue Code of 1986, as amended, and the final OID regulations. ---------------------------- SALOMON SMITH BARNEY ---------------------------- April 30, 1998