27th Apr 2005 15:53
Diageo PLC27 April 2005 27 April 2005 Diageo expects to issue a benchmark USD global bond Diageo, the world's leading premium drinks business, has today announced that itexpects to issue a benchmark US-dollar global bond, subject to marketconditions, and to this end has had discussions with the credit rating agencies. Approximately $900 million of Diageo's current debt will mature between May andAugust 2005 and the company views current market conditions as a favourableopportunity to pre-fund some of this maturing debt before it enters its closedperiod. Diageo's closed period commences in July and ends with the announcementof the preliminary results in September 2005. Capital structure Diageo's policy, as outlined in the October 2004 AGM statement, is that theappropriate capital structure for the group is one which achieves capitalefficiency, maximises flexibility and gives the appropriate level of access tothe debt markets at attractive cost levels, and that this is best achieved bytargeting a range of ratios which are currently broadly consistent with a singleA credit rating. Acquisition strategy The pace of consolidation activity in the total beverage alcohol sector isincreasing - with the offer by Pernod Ricard for Allied Domecq as the latestexample. In this environment, Diageo expects to continue to evaluateopportunities to make acquisitions that complement its existing premium drinksbrands and create shareholder value. The funding options for potentialacquisitions include the use of the group's substantial free cash flow, thepossible monetization of the remaining shares in General Mills and borrowings.In limited circumstances, Diageo is prepared to change its targeted range offinancial ratios for a period of time provided that those new ratios are broadlyconsistent with a credit rating in the single A band. This press release shall not constitute an offer to sell or the solicitation ofan offer to buy securities either in the United States or any otherjurisdiction, nor shall there be any sale of these securities in anyjurisdiction in which such offer, solicitation or sale would be unlawful priorto registration and qualification under the securities laws of any suchjurisdiction. No offer of securities is being and will be made to persons whoare established, domiciled or have their residence ("are resident") in theNetherlands. Any public offering of securities in the United States is beingmade solely by means of a prospectus supplement to the prospectus included inthe Registration Statement filed by Diageo plc, Diageo Capital plc, DiageoFinance B.V. and Diageo Investment Corporation and previously declaredeffective. -ends- Diageo contacts: Investor enquiries Catherine James +44 (0)20 7927 5272 [email protected] Media enquiries Isabelle Thomas +44 (0)20 7927 5967 [email protected] Notes to editors: Diageo is the world's leading premium drinks business. With its global vision,and local marketing focus, Diageo brings to consumers an outstanding collectionof beverage alcohol brands across the spirits, wine and beer categoriesincluding Smirnoff, Guinness, Johnnie Walker, Baileys, J&B, Cuervo, CaptainMorgan and Tanqueray, and Beaulieu Vineyard and Sterling Vineyards wines. Diageotrades in some 180 markets around the world and is listed on both the New YorkStock Exchange (DEO) and the London Stock Exchange (DGE). For more informationabout Diageo, its people, brands and performance, visit us at www.diageo.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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