Procter & Gamble back in market after record-tight 10-year sale

PROCTER & Gamble (P&G), the maker of Tide laundry detergent and Crest toothpaste, is planning to sell corporate bonds on Monday (Oct 21), according to a source with knowledge of the offering.

The sale will be in as many as two parts. The longer portion of the offering, a 10-year fixed-rate security, may yield 0.6 percentage point above Treasuries, the source said.

The consumer-products giant last sold US investment-grade bonds in January, issuing US$1.35 billion of notes. That offering included a 10-year bond priced just 0.37 percentage point above comparable Treasuries, the smallest premium for such a note according to data compiled by Bloomberg dating to 2000.

The new bond sale comes as P&G just exited an earnings blackout for issuance. The company on Friday reported quarterly sales growth that fell slightly short of analysts’ average forecast.

A P&G representative was not immediately available to comment on Monday, nor were those from deal underwriters Deutsche Bank, Goldman Sachs and Morgan Stanley.

P&G is one of two firms in the market with US investment-grade bond deals. BLOOMBERG