E-Malt.com News article: 1823

UK-based Diageo Plc's, the maker of Guinness beer, planned 500 million euro five-year bond will be priced at 20-23 basis points over swaps, Reuters said on November 19. The company has mandated HSBC and Lehman Brothers to lead manage the sale. The transaction will be priced towards the end of the week, a banker said earlier on November 19. Diageo's long-term debt is rated A with a negative outlook by Standard and Poor's, and A2 with a stable outlook by Moody's Investors Service. S&P cut its rating on Diageo in October from A+, and said that the group needs rapidly to improve and maintain its financial measures if the ratings are to be maintained.

Diageo, which makes Smirnoff vodka, Johnnie Walker scotch and Guinness beer, said in October there were signs of a pick up in some of its markets, particularly the United States, and that it was continuing to outperform rivals. The company said the global economic outlook remained uncertain, but added it was continuing to gain market share, even in difficult trading environments such as Latin America. Diageo last issued a fixed-rate bond in April, when it sold $200 million of 15-year notes at a coupon of 4.85 %.


21 November, 2003