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Diageo prices $1.5 billion USD bonds

Why we think this is good

The RNS announcement indicates that Diageo has successfully launched and priced a $1.5 billion USD bond offering, which is a positive financing event. The bonds are being issued by Diageo Investment Corporation and guaranteed by Diageo plc, suggesting a firm offer. The proceeds will be used for general corporate purposes, which is also a positive. However, the RNS does not provide enough information to assess the full financial impact of the bond issuance, so the sentiment score is capped at 'Good' due to the Very Good rating constraint.

Key Points

  • Diageo launches and prices $1.5 billion USD bonds
  • Bonds issued by Diageo Investment Corporation, guaranteed by Diageo plc
  • Proceeds to be used for general corporate purposes

Summary

The major beverage company has successfully launched and priced $1.5 billion in new bonds, which will be used for general corporate purposes.

Diageo, a global leader in beverage alcohol, has launched and priced a $1.5 billion SEC-registered bond offering, consisting of $750 million 5.125% fixed rate notes due 2030 and $750 million 5.625% fixed rate notes due 2035. The bonds are being issued by Diageo Investment Corporation, with payment of principal and interest fully and unconditionally guaranteed by Diageo plc. Proceeds from this issuance will be used for general corporate purposes.

GENERAL UPDATE