Published on 8/9/2017 in the Prospect News Investment Grade Daily.
New Issue: Procter & Gamble prices $2 billion of five-, 10-year senior notes
By Cristal Cody
Tupelo, Miss., Aug. 9 – Procter & Gamble Co. priced $2 billion of senior notes (Aa3/AA-) in two tranches on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $1.25 billion of 2.15% five-year notes at 99.854 to yield 2.181%. The notes priced with a spread of 38 basis points over Treasuries, on the tight side of talk in the Treasuries plus 40 bps area.
Procter & Gamble priced $750 million of 2.85% 10-year notes at 99.793 to yield 2.874%, or a spread of 63 bps over Treasuries. The notes were talked to price in the Treasuries plus 65 bps area.
Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes.
The consumer products company is based in Cincinnati.
| Issuer: | Procter & Gamble Co.
|
| Amount: | $2 billion
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC
|
| Senior co-managers: | Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and Morgan Stanley & Co. 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 and U.S. Bancorp Investments, Inc.
|
| Trade date: | Aug. 9
|
| Settlement date: | Aug. 11
|
| Ratings: | Moody’s: Aa3
|
| S&P: AA-
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Aug. 11, 2022
|
| Coupon: | 2.15%
|
| Price: | 99.854
|
| Yield: | 2.181%
|
| Spread: | Treasuries plus 38 bps
|
| Price guidance: | Treasuries plus 40 bps area
|
| Make-whole call: | Any time at greater of par or Treasuries plus 7.5 bps
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | Aug. 11, 2027
|
| Coupon: | 2.85%
|
| Price: | 99.793
|
| Yield: | 2.874%
|
| Spread: | Treasuries plus 63 bps
|
| Price guidance: | Treasuries plus 65 bps area
|
| Make-whole call: | Any time at greater of par or Treasuries plus 10 bps
|
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