THE WHAT? Procter & Gamble has raised US$4 billion through the issuance of senior notes across four maturities, securing long-term financing following stronger-than-expected first-quarter financial results.
THE DETAILS The transaction includes US$750 millions at 5.125 percent due in 2031, US750 million at 5.300 percent due in 2033, US$1.25billion at 5.450 percent due in 2035 and US$1.25 billion at 5.900 percent due in 2056. The financing follows fiscal first-quarter revenue of US$23.28 billion and core earnings of US$2.00 per share, exceeding analyst expectations. P&G reported organic growth across all ten product categories despite higher raw material and freight costs.
THE WHY? The transaction highlights the importance of access to long-term capital for multinational consumer goods manufacturers managing rising operating costs and investment requirements. For P&G, whose portfolio includes major cosmetics and personal care brands, the financing provides flexibility to support manufacturing, innovation and international operations.
Source: investing.com
