General Mills: Sale of 30-year bonds draws strong investor response

By Andrea Heisinger

New York, May 27 - General Mills, Inc.'s $500 million issue of 5.4% bonds due 2040 was well-received, a company spokesperson said a day after the bonds were priced.

The price of 130 basis points over Treasuries was in line with the company's expectations, said Kirstie Foster, director of corporate public relations, in an e-mail message. The bonds were sold in line with price guidance in the 130 bps area, a source said on Wednesday after the bond sale.

"We had a strong response from the market," she said.

General Mills issued bonds in order to "take advantage of historically low long-term rates," Foster said.

The company was able to get the amount of bonds that it needed priced, and the transaction was announced as will-not-grow, she said.

The 30-year maturity was chosen strategically.

"We felt being able to lock into a historically low rate for years to come was in the best interest of our shareholders," Foster said.

General Mills is a consumer food company based in Minneapolis.

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