Published on 10/27/2014 in the Prospect News Investment Grade Daily.
New Issue: Procter & Gamble sells upsized $1 billion five-year fixed, floating-rate notes
By Aleesia Forni
Virginia Beach, Oct. 27 – The Procter & Gamble Co. sold an upsized $1 billion offering of five-year senior notes (Aa3/AA-/) in fixed- and floating-rate tranches on Monday, according to a market source and an FWP filed with the Securities and Exchange Commission.
The sale included $450 million of floating-rate notes due 2019 priced at par to yield Libor plus 27 basis points.
There was also a $550 million tranche of 1.9% five-year notes priced at 99.848 to yield 1.932%, or Treasuries plus 45 bps.
Pricing was at the tight end of talk.
Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes.
Procter & Gamble is a Cincinnati-based consumer products company.
| Issuer: | Procter & Gamble Co.
|
| Issue: | Senior notes
|
| Amount: | $1 billion, upsized from $750 million
|
| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC
|
| Senior co-managers: | Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC
|
| Co-managers: | Barclays, BBVA Securities Inc., Credit Suisse Securities (USA) LLC, ING Financial Markets LLC, Fifth Third Securities, Inc., BofA Merrill Lynch, MUFG, PNC Capital Markets LLC, RBC Capital Markets, LLC, RBS Securities Inc., Williams Capital Group, LP, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC
|
| Trade date: | Oct. 27
|
| Settlement date: | Nov. 3
|
| Ratings: | Moody’s: Aa3
|
| Standard & Poor’s: AA-
|
| Distribution: | SEC registered
|
|
|
| Five-year floaters
|
| Amount: | $450 million
|
| Maturity: | Nov. 1, 2019
|
| Coupon: | Libor plus 27 bps
|
| Price: | Par
|
| Yield: | Libor plus 27 bps
|
| Price talk: | Libor equivalent to five-year notes
|
|
|
| Five-year notes
|
| Amount: | $550 million
|
| Maturity: | Nov. 1, 2019
|
| Coupon: | 1.9%
|
| Price: | 99.848
|
| Yield: | 1.932%
|
| Spread: | Treasuries plus 45 bps
|
| Price talk: | Treasuries plus 50 bps area, tightened from Treasuries plus 55 bps to 60 bps
|
| Make-whole call: | Treasuries plus 7.5 bps
|
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