Published on 1/23/2023 in the Prospect News Investment Grade Daily.
New Issue: Procter & Gamble sells $2.1 billion senior notes in three tranches
By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Jan. 23 – Procter & Gamble Co. priced $2.1 billion of senior notes (Aa3/AA-) in three tranches on Monday, according to an FWP filed with the Securities and Exchange Commission and additional details from a market source.
A $650 million tranche of 4.1% three-year notes priced at a spread of 23 basis points over Treasuries. These notes priced at 99.933 to yield 4.124%. Price talk was in the Treasuries plus 45 bps area.
Procter & Gamble sold $600 million of 3.95% five-year notes at a spread of 35 bps over Treasuries. These notes priced at 99.897 to yield 3.973%. Price talk had the notes coming in the 55 bps area.
An $850 million tranche of 4.05% 10-year notes was sold at a spread of 53 bps over Treasuries versus talk in the 75 bps area. These notes priced at 99.992 to yield 4.051%.
Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds will be used for general corporate purposes.
The consumer products company is based in Cincinnati.
| Issuer: | Procter & Gamble Co.
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| Amount: | $2.1 billion
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| Issue: | Senior notes
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| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC
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| Senior co-managers: | Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc.
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| Co-managers: | BofA Securities, Inc., Barclays, BBVA Securities Inc., MUFG, RBC Capital Markets, LLC, U.S. Bancorp Investments, Inc., BNP Paribas Securities Corp., ING Financial Markets LLC, Fifth Third Securities, Inc., PNC Capital Markets LLC and Siebert Williams Shank & Co., LLC
|
| Trustee: | Deutsche Bank Trust Co. Americas
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| Counsel to issuer: | In-house counsel and Fried, Frank, Harris, Shriver & Jacobson LLP for New York law
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| Counsel to underwriters: | Fried, Frank, Harris, Shriver & Jacobson LLP
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| Trade date: | Jan. 23
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| Settlement date: | Jan. 26
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| Ratings: | Moody’s: Aa3
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| S&P: AA-
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| Distribution: | SEC registered
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|
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| Three-year notes
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| Amount: | $650 million
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| Maturity: | Jan. 26, 2026
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| Coupon: | 4.1%
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| Price: | 99.933
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| Yield: | 4.124%
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| Spread: | Treasuries plus 23 bps
|
| Call: | Greater of a make-whole call at Treasuries plus 5 bps and a par call
|
| Price talk: | Treasuries plus 45 bps area
|
| Cusip: | 742718FY0
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|
|
| Five-year notes
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| Amount: | $600 million
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| Maturity: | Jan. 26, 2028
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| Coupon: | 3.95%
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| Price: | 99.897
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| Yield: | 3.973%
|
| Spread: | Treasuries plus 35 bps
|
| Call: | Greater of a make-whole call at Treasuries plus 10 bps and a par call
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| Price talk: | Treasuries plus 55 bps area
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| Cusip: | 742718FZ7
|
|
|
| 10-year notes
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| Amount: | $850 million
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| Maturity: | Jan. 26, 2033
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| Coupon: | 4.05%
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| Price: | 99.992
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| Yield: | 4.051%
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| Spread: | Treasuries plus 53 bps
|
| Call: | Greater of a make-whole call at Treasuries plus 10 bps and a par call
|
| Price talk: | Treasuries plus 75 bps area
|
| Cusip: | 742718GA1
|
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