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Coca-Cola announces five-part benchmark bond

By Mike Gambale

Oct 29 (IFR) - The Coca-Cola Co, rated Aa3, AA-/A+, announced a new five-part benchmark US dollar bond on Tuesday, sources on the deal told IFR.

The drinks giant is coming to market with a three-year fixed rate note and three-year floater, as well as fixed-rate tenors of five, seven and 10 years.

Initial price thoughts have been set in the area of Treasuries plus 35bps, 50-55bp, 70bp and 80bp for the fixed rate tranches in maturity order. Guidance on the three-year floater is Libor plus the equivalent spread on the three-year fixed.

It is Coca-Cola's first appearance in the US dollar bond market since February, when it raised USD2.5 billion in a three-part transaction.

Bank of America Merrill Lynch, Deutsche Bank, HSBC and Morgan Stanley are joint bookrunners on the new bond.