Diageo Raises $3.25 Billion in First Bond Offering in a Year

Diageo Plc (DGE), the world’s biggest distiller, sold $3.25 billion of dollar-denominated debt in four parts with its first offering in almost a year.

The company issued $750 million of 0.625 percent, three- year debt to yield 35 basis points more than similar-maturity Treasuries, $650 million of 1.125 percent, five-year notes at a relative yield of 55 basis points, $1.35 billion of 2.625 percent, 10-year securities at a 95 basis-point spread and $500 million of 3.875 percent, 30-year debt at 105, according to data compiled by Bloomberg.

Proceeds will be used to repay commercial paper and its 1.15 billion euros ($1.49 billion) of 5.5 percent bonds due July 2013, among other general corporate purposes, the London-based company said today in a filing.

The seller of Johnnie Walker Scotch and Crown Royal Canadian whisky last sold debt in May, raising $2.5 billion in a three-part offering, Bloomberg data show. The sale included $1 billion of 2.875 percent, 10-year debentures at a relative yield of 107 basis points, which traded at 103.3 cents on the dollar to yield 2.47 percent on April 22, according to Trace, the bond- price reporting system of the Financial Industry Regulatory Authority.

The new bonds may be rated A3 by Moody’s Investors Service, Bloomberg data show. Bank of America Corp., Barclays Plc, Goldman Sachs Group Inc., JPMorgan Chase & Co. and UBS AG managed the offering of the notes, which were sold through the company’s Diageo Capital Plc unit.

To contact the reporter on this story: Sarika Gangar in New York at sgangar@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net DGE LN <Equity> CN

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