By Andrea Heisinger
New York, April 30 - Colgate-Palmolive Co. sold $500 million of 2.3% 10-year senior notes on Monday to yield Treasuries plus 58 basis points, an informed source said.
The deal was sold tighter than guidance in the high 60 bps area, the source said.
The notes (Aa3/AA-/AA-) were priced at 98.249 to yield 2.499%. There is a make-whole call at Treasuries plus 10 bps.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC ran the books.
Co-managers were Bank of America Merrill Lynch, Barclays Capital Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Goldman Sachs & Co., HSBC Securities (USA) Inc., RBS Securities Inc., Wells Fargo Securities LLC and Williams Capital Group LP.
Proceeds will be used for general corporate purposes, including retirement of commercial paper.
Colgate was last in the market with a $1 billion deal in three tranches on Nov. 3, 2011. The 2.45% 10-year notes from that offering priced at 55 bps over Treasuries.
The consumer products company is based in New York City.
| Issuer: | Colgate-Palmolive Co.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Maturity: | May 3, 2022
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
|
| Co-managers: | Bank of America Merrill Lynch, Barclays Capital Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Goldman Sachs & Co., HSBC Securities (USA) Inc., RBS Securities Inc., Wells Fargo Securities LLC, Williams Capital Group LP
|
| Coupon: | 2.3%
|
| Price: | 98.249
|
| Yield: | 2.499%
|
| Spread: | Treasuries plus 58 bps
|
| Call: | Make-whole at Treasuries plus 10 bps
|
| Trade date: | April 30
|
| Settlement date: | May 3
|
| Ratings: | Moody's: Aa3
|
| Standard & Poor's: AA-
|
| Fitch: AA-
|
| Price talk: | High 60 bps area
|
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