UPDATE: 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 Inc. (C), Deutsche Bank Securities (DB) and HSBC Securities and via active bookrunners Bank of America Merrill Lynch (BAC), Citigroup and J.P. Morgan Chase & Co. (JPM) for the six-year piece.

Preliminary pricing guidance suggests a risk premium of around 30 basis points over Treasurys for the three-year piece and about 80 basis points for the six-year tranche.

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

A call to the company seeking comment hasn't yet been returned.

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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