Unilever NV (UNA), the world’s second- largest consumer-products company, is offering $1 billion of debt in its first dollar-denominated issue in more than a year.
The maker of Dove soaps and Ben & Jerry’s ice cream may sell three-year notes to yield about 30 basis points more than similar-maturity Treasuries and five-year debentures at a relative yield of about 50 basis points, according to a person familiar with the transaction. Proceeds will be used for general corporate purposes.
Unilever last sold dollar debt in February 2011, issuing $500 million of 2.75 percent, five-year notes at a spread of 50 basis points and $1 billion of 4.25 percent, 10-year bonds at 65 basis points, according to data compiled by Bloomberg.
The debt due February 2016 traded at 106.5 cents on the dollar to yield 0.9 percent on July 13, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The company last issued three-year dollar-denominated debt in 2000, Bloomberg data show.
The new bonds may be rated A1, the fifth-highest level of investment-grade, by Moody’s Investors Service and will be issued through Unilever Capital Corp., said the person, who asked not to be identified because the terms are private. Deutsche Bank AG, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley are managing the sale for the Rotterdam, Netherlands-based company.
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