By Cristal Cody
Chicago, Oct. 3 – Diageo Capital plc priced $1.7 billion of notes over two parts on Monday after announcing that the company would be selling three notes on Monday morning, according to FWP filings with the Securities and Exchange Commission and details from a market source.
The deal includes two fixed-rate notes, but was initially set up as a tripart deal with a floating-rate tranche.
The $1.7 billion distribution was slightly lighter for the first tranche, which priced as $800 million of 5.375% three-year notes at 99.729 to yield 5.474%, at or Treasuries plus 60 basis points. Price talk was in the 80 bps area.
The first part is redeemable with a Treasuries plus 10 bps make-whole premium until the one-month par call option before the maturity date.
The second tranche, slightly larger, priced as $900 million of 5.625% 10-year notes at 99.63 to yield 5.674%, or at Treasuries plus 100 bps. Talk was in the 120 bps area.
The second part also starts with a make-whole call option, this time at Treasuries plus 15 bps, which converts to a par call option three months prior to the maturity date.
BofA Securities, Inc., Deutsche Bank Securities Inc., RBC Capital Markets LLC, Standard Chartered Bank, Barclays, BNP Paribas Securities Corp. and Goldman Sachs & Co. LLC were joint bookrunners.
Proceeds will be used for general corporate purposes.
Application will be made to list the SEC-registered offering on the London Stock Exchange.
The notes are guaranteed by Diageo plc.
The premium drink company is based in London.
| Issuer: | Diageo Capital plc
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| Guarantor: | Diageo plc
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| Amount: | $1.7 billion
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| Issue: | Notes
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| Bookrunners: | BofA Securities, Inc., Deutsche Bank Securities Inc., RBC Capital Markets LLC, Standard Chartered Bank, Barclays, BNP Paribas Securities Corp. and Goldman Sachs & Co. LLC
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| Trustee: | Bank of New York Mellon, London Branch
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| Counsel to issuer: | Sullivan & Cromwell LLP, Slaughter and May, Morton Fraser LLP
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| Counsel to underwriters: | Davis Polk & Wardwell London LLP
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| Trade date: | Oct. 2
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| Settlement date: | Oct. 5
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| Distribution: | SEC registered
|
|
|
| 2026 notes
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| Amount: | $800 million
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| Maturity: | Oct. 5, 2026
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| Coupon: | 5.375%
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| Price: | 99.729
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| Yield: | 5.474%
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| Spread: | Treasuries plus 60 bps
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| Call features: | Make-whole call at Treasuries plus 10 bps; one-month par call
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| Price talk: | Treasuries plus 80 bps area
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| Cusip: | 25243YBK4
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| 2033 notes
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| Amount: | $900 million
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| Maturity: | Oct. 5, 2033
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| Coupon: | 5.625%
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| Price: | 99.63
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| Yield: | 5.674%
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| Spread: | Treasuries plus 100 bps
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| Call features: | Make-whole call at Treasuries plus 15 bps; three-month par call
|
| Price talk: | Treasuries plus 120 bps area
|
| Cusip: | 25243YBN8
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