3rd UPDATE: Colgate-Palmolive Prices Two-Part Debt Offering

Consumer products maker Colgate-Palmolive Co. (CL) sold a two-part debt offering Friday.

The debt deal follows Colgate-Palmolive's 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 with $357 million during the same period last year.

The new issue includes $250 million each of three- and six-year notes. The three-year was led via active bookrunners Citigroup Inc. (C), Deutsche Bank Securities and HSBC Securities, and the six-year piece was sold via active bookrunners Bank of America Merrill Lynch, Citigroup and J.P. Morgan Chase & Co. (JPM).

The three-year piece was sold with a coupon of 1.25% at a price of 99.854 to yield 1.30% and offered a risk premium of 30 basis points over Treasurys, directly in line with its launch level and preliminary pricing guidance. The six-year tranche was sold with a coupon of 2.625% at a price of 99.56 to yield 2.705%, or at 77 basis points over Treasurys, three basis points narrower than original guidance had suggested, indicating good demand.

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

A call to the company seeking comment hadn't 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

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