By Cristal Cody
Tupelo, Miss., April 28 – Diageo Capital plc sold $2.5 billion of senior notes (A3/A-) in three tranches on Monday, according to additional details in an FWP filing with the Securities and Exchange Commission.
A $750 million tranche of 1.375% notes due Sept. 29, 2025 priced at 99.632 to yield 1.446% and a spread of Treasuries plus 105 basis points.
Initial price talk was in the Treasuries plus 155 bps area.
Diageo priced $1 billion of 2% 10-year notes at 99.523 to yield 2.053%. The notes were sold with a Treasuries plus 140 bps spread compared to talk at the 180 bps spread area.
A $750 million tranche of 2.125% notes due April 29, 2032 priced at 99.181 to yield 2.203% and a spread of 155 bps over Treasuries.
The 12-year tranche was talked to print at the 200 bps spread area.
BofA Securities, Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Barclays, Morgan Stanley & Co. LLC, NatWest Markets Securities Inc., RBC Capital Markets LLC, Santander Investment Securities Inc. and Standard Chartered Bank were the bookrunners.
The notes are guaranteed by Diageo plc.
Proceeds will be used for general corporate purposes.
The premium drink company is based in London.
| Issuer: | Diageo Capital plc
|
| Guarantor: | Diageo plc
|
| Amount: | $2.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Barclays, Morgan Stanley & Co. LLC, NatWest Markets Securities Inc., RBC Capital Markets LLC, Santander Investment Securities Inc. and Standard Chartered Bank
|
| Call feature: | None
|
| Trade date: | April 27
|
| Settlement date: | April 29
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | Sept. 29, 2025
|
| Coupon: | 1.375%
|
| Price: | 99.632
|
| Yield: | 1.446%
|
| Spread: | Treasuries plus 105 bps
|
| Call features: | Make-whole call before Aug. 29, 2025 at Treasuries plus 20 bps; thereafter at par
|
| Price guidance: | Treasuries plus 155 bps area
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | April 29, 2030
|
| Coupon: | 2%
|
| Price: | 99.523
|
| Yield: | 2.053%
|
| Spread: | Treasuries plus 140 bps
|
| Call features: | Make-whole call before Jan. 29, 2030 at Treasuries plus 25 bps; thereafter at par
|
| Price guidance: | Treasuries plus 180 bps area
|
|
|
| 12-year notes
|
| Amount: | $750 million
|
| Maturity: | April 29, 2032
|
| Coupon: | 2.125%
|
| Price: | 99.181
|
| Yield: | 2.203%
|
| Spread: | Treasuries plus 155 bps
|
| Call features: | Make-whole call before Jan. 29, 2032 at Treasuries plus 25 bps; thereafter at par
|
| Price guidance: | Treasuries plus 200 bps area
|
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