Clorox Co priced a $1.5 billion debt transaction on Wednesday, dividing the sale into three separate tranches with maturities spanning five to 10 years.
The smallest and shortest tranche consisted of $550 million of five-year notes due May 15, 2031. Those notes carry a 4.700% coupon, were priced at 99.995 and yield 4.701%. The spread on this tranche was set at 70 basis points, which the company placed as tighter than initial guidance of 70 basis points and below an initial price talk of 105 basis points.
A seven-year tranche comprised $400 million of notes maturing May 15, 2033. These securities carry a 4.950% coupon and were priced at 99.847 to yield 4.976%. The spread on the seven-year piece was 80 basis points, matching guidance and coming in beneath an initial price talk around 115 basis points.
The largest portion of the offering was $550 million of 10-year notes due May 15, 2036. Those notes bear a 5.250% coupon and were priced at 99.999 to yield 5.25%. The spread for the 10-year tranche was set at 90 basis points, which the issuer indicated was in line with guidance and tighter than an initial price talk of 125 basis points.
All three tranches are SEC-registered senior unsecured notes. They include a change of control provision at 101 and make-whole call features.
Ratings on the offering are expected to be Baa1 from Moody's and BBB from S&P.
Clorox said it will apply the proceeds to repay outstanding borrowings under its delayed draw term credit agreement. Any remaining funds will be used for general corporate purposes.
Settlement for the transaction is scheduled for May 11, 2026.
Citigroup, JPMorgan and Wells Fargo Securities served as bookrunners on the deal.
Context and structure
The issuance was structured into three distinct maturities so investors could select exposure by tenor and yield. Each tranche was assigned coupon levels and pricing that produced final yields of 4.701% on the five-year, 4.976% on the seven-year and 5.25% on the 10-year notes, as reflected in the pricing and percent-of-par figures reported above.
Settlement and use of proceeds
Clorox plans to use the funds primarily to repay debt outstanding under a specific delayed draw term credit agreement, with any leftover proceeds allocated to general corporate purposes. The issuer set a formal settlement date of May 11, 2026 to complete the transaction.
Bank-syndication and credit assumptions
Citigroup, JPMorgan and Wells Fargo Securities organized the books for the offering. Credit-quality assumptions for the notes are noted as expected ratings of Baa1 from Moody's and BBB from S&P.
The notes include standard provisions for senior unsecured corporate debt, including a change of control clause fixed at 101 and make-whole call mechanics.