General Mills to plan first benchmark bond sale since 2011
General Mills Inc., the maker of Cheerios cereal, is offering its first benchmark bonds in about 14 months, including its first 30-year debt since 2010.
The company may sell three-year fixed- or floating-rate bonds, or a portion of each, and the 30-year securities as soon as today, according to a person familiar with the transaction. Proceeds will be used to repay debt.
General Mills last sold benchmark debt in November 2011, issuing $1 billion of 3.15 percent, 10-year debentures to yield 125 basis points more than similar-maturity Treasuries, according to data compiled by Bloomberg. The bonds traded at 105.3 cents on the dollar to yield 2.48 percent on Thursday, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
It last sold 30-year securities in May 2010, issuing $500 million of 5.4 percent debt, Bloomberg data show. Benchmark sales are typically at least $500 million.
Credit Suisse Group, Deutsche Bank and JPMorgan Chase are managing the new offering for the Minneapolis-based company, said the person, who asked not to be identified because terms aren't set. The bonds may be rated Baa1 by Moody's Investors Service and BBB+ by Standard & Poor's.