Colgate-Palmolive Raises $500 Million to Retire Commercial Paper
Colgate-Palmolive Co. (CL), the world’s largest toothpaste maker, sold $500 million of 10.5-year bonds to retire short-term debt that companies use to fund daily operations.
The company issued the 1.95 percent bonds due February 2023 to yield 58 basis points more than similar-maturity Treasuries, according to data compiled by Bloomberg. Proceeds from the sale will be used to retire commercial paper, IOUs typically maturing in 270 days or less that corporations sell to fund expenses such as rent and salaries, according to a person familiar with the deal who asked not to be identified without authorization to speak publicly.
Colgate last sold bonds in April, issuing $500 million of 2.3 percent, 10-year obligations that also paid a 58 basis-point spread, Bloomberg data show. The new notes are expected to be rated Aa3 by Moody’s Investors Service, its fourth-highest level of investment grade.
Procter & Gamble Co., Colgate’s largest competitor, sold $1 billion of 10-year, 2.3 percent bonds in February with a 55 basis-point spread, Bloomberg data show. The bonds yielded 1.92 percent July 25, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
HSBC Holdings Plc, JPMorgan Chase & Co. and Morgan Stanley managed the sale for New York-based Colgate.
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