McCormick raises $2.5 billion; Procter & Gamble sells $2 billion notes; credit spreads ease

By Cristal Cody

Tupelo, Miss., Aug. 9 – Two high-grade issuers tapped the primary market on Wednesday with $4.5 billion of bonds.

McCormick & Co., Inc. priced $2.5 billion of senior notes (Baa2/BBB/) in four tranches to help finance its $4.2 billion acquisition of the condiments division of Reckitt Benckiser LLC.

McCormick & Co. sold $750 million of 2.7% five-year notes at a spread of Treasuries plus 90 bps; $700 million of 3.15% seven-year notes with a 110 bps over Treasuries spread; $750 million offering of 3.4% 10-year notes at a Treasuries plus 120 bps spread; and $300 million of 4.2% 30-year notes at a spread of Treasuries plus 140 bps.

Procter & Gamble Co. sold a $2 billion offering of senior notes.

The company sold $1.25 billion of 2.15% five-year notes at 99.854 to yield 2.181% and $750 million of 2.85% 10-year notes at 99.793 to yield 2.874%.

Investment-grade issuers have priced nearly $39 billion of bonds in the first three sessions of the week. Market sources expected about $35 billion of supply over the week.

In the secondary market, Procter & Gamble’s 2.7% notes due Feb. 2, 2026 were flat on the day at 43 basis points bid after softening 2 bps on Tuesday, a source said.

The Markit CDX North American Investment Grade index closed about 1 bp softer at a spread of 60 bps.

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