Published on 10/31/2016 in the Prospect News Investment Grade Daily.
New Issue: Procter & Gamble prices $1.75 billion of five- and 10-year notes
By Cristal Cody
Eureka Springs, Ark., Oct. 31 – Procter & Gamble Co. priced $1.75 billion of notes (Aa3/AA-) in two parts on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $875 million of 1.7% five-year notes at 99.795 to yield 1.743%, or 43 basis points over Treasuries.
Procter & Gamble priced $875 million of 2.45% 10-year notes at 99.859 to yield 2.466%. The 10-year notes priced with a spread of 63 bps over Treasuries.
Both tranches priced on the tight side of guidance.
Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds will be used to fund all or part of the redemption of all $1.25 billion of the company’s 4.7% notes due 2019 on Nov. 3 and all or part of a previously announced debt tender offer for 12 series of bonds.
The consumer products company is based in Cincinnati.
| Issuer: | Procter & Gamble Co.
|
| Amount: | $1.75 billion
|
| Description: | Notes
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| Bookrunners: | Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC
|
| Senior co-managers: | Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC
|
| Co-managers: | Barclays, BofA Merrill Lynch, MUFG, RBC Capital Markets, LLC, BBVA Securities Inc., ING Financial Markets LLC, Wells Fargo Securities, LLC, Williams Capital Group, LP, Fifth Third Securities, Inc., PNC Capital Markets LLC, U.S. Bancorp Investments, Inc.
|
| Trade date: | Oct. 31
|
| Settlement date: | Nov. 3
|
| Ratings: | Moody’s: Aa3
|
| S&P: AA-
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $875 million
|
| Maturity: | Nov. 3, 2021
|
| Coupon: | 1.7%
|
| Price: | 99.795
|
| Yield: | 1.743%
|
| Spread: | Treasuries plus 43 bps
|
| Price guidance: | Treasuries plus 45 bps area, plus or minus 2 bps
|
| Make-whole call: | Any time at greater of par or Treasuries plus 10 bps
|
|
|
| 10-year notes
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| Amount: | $875 million
|
| Maturity: | Nov. 3, 2026
|
| Coupon: | 2.45%
|
| Price: | 99.859
|
| Yield: | 2.466%
|
| Spread: | Treasuries plus 63 bps
|
| Price guidance: | Treasuries plus 65 bps area, plus or minus 2 bps
|
| Make-whole call: | Any time at greater of par or Treasuries plus 10 bps
|
|
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