Overview of Clorox's Debt Offering#
Clorox Co has announced a significant $1.5 billion debt offering, structured into three parts with different maturity periods. This move allows the company to manage its finances effectively while securing funds for various purposes.
Details of the Tranches#
The debt offering is divided into three tranches: - Five-Year Notes: Clorox issued $550 million in notes that will mature on May 15, 2031. These notes come with a 4.700% interest rate and were priced slightly below par at 99.995, resulting in a yield of 4.701%. - Seven-Year Notes: A second tranche of $400 million will mature on May 15, 2033, with a 4.950% interest rate. This tranche was priced at 99.847, yielding 4.976%. - Ten-Year Notes: The largest portion consists of $550 million in notes maturing on May 15, 2036, which carry a 5.250% interest rate. These were priced at 99.999, yielding exactly 5.25%.
Credit Ratings and Features#
The notes are expected to receive solid credit ratings of Baa1 from Moody’s and BBB from S&P. They are classified as senior unsecured notes, meaning they are not backed by any specific assets but have a higher claim on assets in case of liquidation. Additionally, they include a change of control provision and make-whole call features, which provide flexibility in certain situations.
Use of Proceeds#
Clorox plans to use the funds raised from this debt offering primarily to pay off existing debt under its delayed draw term credit agreement. Any remaining funds will be allocated for general corporate purposes. The settlement for this debt offering is scheduled for May 11, 2026.
Underwriters#
The deal is being managed by Citigroup, JPMorgan, and Wells Fargo Securities, who are acting as bookrunners for this offering.