Colgate-Palmolive Selling Two-Part Debt Offering

Consumer products maker Colgate-Palmolive Co. (CL) is in the market Friday with a two-part debt offering.

The debt deal follows Colgate-Palmolive reporting Thursday that while higher costs pressured its earnings during the first quarter, the company managed to meet analysts' profit expectations. Colgate reported $576 million in first-quarter profit compared to $357 million during the same time period last year.

The new issue will include $250 million each of three- and six-year notes. Final pricing is expected later this session on the three-year via active bookrunners Citigroup (C), Deutsche Bank Securities (DB) and HSBC Securities and via active bookrunners Bank of America Merrill Lynch (BAC), Citigroup and JP Morgan Chase (JPM) for the six-year piece.

Proceeds will be used for general corporate purposes, which could include the repayment of outstanding debt securities.

The deal has been rated Aa3 by Moody's Investors Service and AA- by Standard & Poor's.

So far Friday, the Colgate issue is the only bond on the high-grade primary docket, as attention remains on first quarter earnings accompanied by the distraction of the royal wedding in London.

-By Kellie Geressy-Nilsen; Dow Jones Newswires; 212 416-2225; kellie.geressy@dowjones.com

Colgate Palmolive (NYSE:CL)
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