UK: Diageo launches and prices a $400m floating rate note and $600m fixed rate bond
Diageo plc, the world’s leading premium drinks business, launched and priced on March 27 US dollar 400 million of 3-year and US dollar 600 million of 7-year SEC registered securities. The bonds were issued by Diageo Finance B.V., with payment of principal and interest fully guaranteed by Diageo plc.
Due on 30 March 2009, the 3-year issue pays a coupon of 3 month US dollar LIBOR + 12 basis points. Due on 1 April 2013, the 7-year issue pays a coupon of 5.5%. Citigroup, Credit Suisse and RBS Greenwich Capital were joint bookrunners. Deutsche Bank Securities, Goldman Sachs & Co., JPMorgan and UBS Investment Bank were co-managers. Proceeds from this issuance will be used for general corporate purposes.
The 3-year issue pays a floating rate coupon based on the 3-month US dollar LIBOR rate. For indicative purposes only, at 11am London time on 27 March 2006, the 3-month US dollar LIBOR rate was 4.96%. The actual rate used to set the coupon on the 3-year issue, which will be determined in the future, cannot be predicted now and may vary from this figure.
The 7-year issue is priced at a spread of 80 basis points above the yield for the 7-year U.S. Treasury Note due February 2013.
Diageo is the world's leading premium drinks business. With its global vision, and local marketing focus, Diageo brings to consumers an outstanding collection of beverage alcohol brands across the spirits, wine and beer categories including Smirnoff, Guinness, Johnnie Walker, Baileys, J&B, Cuervo, Captain Morgan and Tanqueray, and Beaulieu Vineyard and Sterling Vineyards wines. Diageo trades in some 180 countries around the world and is listed on both the New York Stock Exchange (DEO) and the London Stock Exchange (DGE). For more information about Diageo, its people, brands and performance, visit us at www.diageo.com
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(libra 0.8477 sec.)