Published on 8/1/2022 in the Prospect News Investment Grade Daily.
New Issue: Colgate-Palmolive prices $1.5 billion of notes in three tranches
By Wendy Van Sickle
Columbus, Ohio, Aug. 1 – Colgate-Palmolive Co. sold $1.5 billion of notes (Aa3/AA-) in three tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.
A $500 million tranche of 3.1% three-year notes was priced at 99.908 to yield 3.132% with a spread of Treasuries plus 30 basis points.
The $500 million of 3.1% five-year paper sold at 99.88 to yield 3.126% with a spread of 45 bps over Treasuries.
Finally, there was a $500 million tranche of 3.25% 10-year notes sold at 99.121 to yield 3.354%, or 75 bps over Treasuries.
Barclays, BofA Securities, Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and U.S. Bancorp Investments, Inc. are the joint bookrunning managers for the offering.
Proceeds will be used for general corporate purposes, which include the retirement of commercial paper. As of June 30, the company’s outstanding commercial paper had a weighted average interest rate of 0.38% with maturities ranging from one day to 28 days.
The consumer products company is based in New York City.
| Issuer: | Colgate-Palmolive Co.
|
| Amount: | $1.5 billion
|
| Issue: | Senior notes
|
| Bookrunners: | Barclays, BofA Securities, Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and U.S. Bancorp Investments, Inc.
|
| Co-managers: | ANZ Securities, Inc., BBVA Securities Inc., BNP Paribas Securities Corp., BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, ICBC Standard Bank plc, Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC, Santander Investment Securities Inc., CastleOak Securities, LP and Siebert Williams Shank & Co., LLC
|
| Trustee: | Bank of New York Mellon
|
| Counsel to issuer: | Hogan Lovells US LLP
|
| Counsel to underwriters: | Mayer Brown LLP
|
| Trade date: | Aug. 1
|
| Settlement date: | Aug. 9
|
| Ratings: | Moody's: Aa3
|
| S&P: AA-
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | Aug. 15, 2025
|
| Coupon: | 3.1%
|
| Price: | 99.908
|
| Yield: | 3.132%
|
| Spread: | Treasuries plus 30 bps
|
| Call: | Make-whole at Treasuries plus 5 bps
|
| Cusip: | 194162AM5
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Aug. 15, 2027
|
| Coupon: | 3.1%
|
| Price: | 99.88
|
| Yield: | 3.126%
|
| Spread: | Treasuries plus 45 bps
|
| Call: | Make-whole at Treasuries plus 10 bps, par call starting July 15, 2027
|
| Cusip: | 194162AN3
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Aug. 15, 2032
|
| Coupon: | 3.25%
|
| Price: | 99.121
|
| Yield: | 3.354%
|
| Spread: | Treasuries plus 75 bps
|
| Call: | Make-whole at Treasuries plus 10 bps, par call starting May 15, 2032
|
| Cusip: | 194162AP8
|
|
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