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Procter & Gamble Ties Its Own Record-Tight 10-Year Spread

Proctor & Gamble Tide brand Ultra Clean laundry detergent on display at a store in Vallejo, California, US, on Saturday, Oct. 7, 2023. Proctor & Gamble Co. is expected to release earning figures on October 18. Photographer: David Paul Morris/Bloomberg (David Paul Morris/Bloomberg)

(Bloomberg) -- Procter & Gamble Co. tied its own record Monday for selling a 10-year US corporate bond at the smallest premium to comparable Treasuries.

The maker of Tide laundry detergent and Crest toothpaste sold $1 billion of notes in two tranches on Monday. The $500 million 10-year note yields 0.37 percentage point above Treasuries, according to a person with knowledge of the offering who asked not to be identified. That matches the level of a $750 million 10-year bond it issued in January, which set the tightest spread for a note of such length according to data compiled by Bloomberg dating to 2000. 

P&G on Monday also priced $500 million of 5-year bonds with a spread of just 0.22 percentage point, nearly reaching the record of 0.20 point set in 2021.

A spokesperson for P&G declined to comment beyond confirming initial price talk for the deal. A representative from Morgan Stanley, one of the deal’s three underwriters, also declined to comment while spokespeople for Deutsche Bank AG and Goldman Sachs Group Inc. didn’t reply. 

P&G was one of two firms that priced US investment-grade bonds on Monday.

(Updates with deal pricing.)

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