By Cristal Cody
Chicago, Oct. 20 – Diageo Capital plc sold $2 billion of notes in three parts on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The notes are all guaranteed by Diageo plc.
The company sold $500 million of 5.2% three-year notes at 99.868 to yield 5.248%, or at Treasuries plus 70 basis points.
Allocations were even on the two longer dated tranches.
A $750 million tranche of 5.3% five-year notes priced at 99.852 to yield 5.334%, or Treasuries plus 100 bps.
A second $750 million tranche, this one due Jan. 24, 2033, priced with a 5.5% coupon at 99.47 to yield 5.565%, or Treasuries plus 145 bps.
The notes due 2025, 2027 and 2033 were talked in the Treasuries plus 95 bps area, 125 bps area and 175 bps area, respectively, a market source told Prospect News.
Each of the notes can be called for early redemption with a make-whole premium of either Treasuries plus 15 bps for the first two tranches or 25 bps for the third tranche until their respective par call dates, in the cases of the two longer dated tranches. The par call date is one month before the maturity date for the 2027 notes and three months before the maturity for the 2033 notes.
Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, NatWest Markets Securities Inc., Santander Investment Securities Inc. and UBS Securities LLC are listed as joint bookrunners.
Proceeds will be used for general corporate purposes.
The beverage alcohol company is based in London.
| Issuer: | Diageo Capital plc
|
| Guarantor: | Diageo plc
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| Amount: | $2 billion
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| Issue: | Notes
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| Bookrunners: | Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, NatWest Markets Securities Inc., Santander Investment Securities Inc. and UBS Securities LLC
|
| Trustee: | Bank of New York Mellon, London Branch
|
| Counsel to issuer: | Sullivan & Cromwell LLP, Slaughter and May and Morton Fraser LLP
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| Counsel to underwriters: | Davis Polk & Wardwell London LLP
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| Trade date: | Oct. 19
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| Settlement date: | Oct. 24
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| Distribution: | SEC registered
|
|
|
| 2025 notes
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| Amount: | $500 million
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| Maturity: | Oct. 24, 2025
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| Coupon: | 5.2%
|
| Price: | 99.868
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| Yield: | 5.248%
|
| Spread: | Treasuries plus 70 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps
|
| Price talk: | Treasuries plus 95 bps area
|
| Cusip: | 25243YBF5
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|
|
| 2027 notes
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| Amount: | $750 million
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| Maturity: | Oct. 24, 2027
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| Coupon: | 5.3%
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| Price: | 99.852
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| Yield: | 5.334%
|
| Spread: | Treasuries plus 100 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps until Sept. 24, 2027; thereafter at par
|
| Price talk: | Treasuries plus 125 bps area
|
| Cusip: | 25243YBG3
|
|
|
| 2033 notes
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| Amount: | $750 million
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| Maturity: | Jan. 24, 2033
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| Coupon: | 5.5%
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| Price: | 99.47
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| Yield: | 5.565%
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| Spread: | Treasuries plus 145 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps until Oct. 24, 2032; thereafter at par
|
| Price talk: | Treasuries plus 175 bps area
|
| Cusip: | 25243YBH1
|
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