Diageo PLC, the maker of Johnnie Walker whisky and Guinness stout, said Wednesday it is raising €1 billion by issuing new bonds, shoring up its finances amid a recent leadership shake-up and weak performance.
The move comes shortly after the sudden departure of Chief Executive Debra Crew, who stepped down last month after just over a year in the top job.
Her exit followed a period of slumping profit, with the company reporting a 4.9% drop in first-half operating profit in February and scrapping its medium-term sales and profit guidance, citing macroeconomic uncertainty.
The company is currently being led by interim CEO Nik Jhangiani, its chief financial officer, while the board searches for a permanent successor.
According to a regulatory filing, the debt will be issued in two equal tranches of €500 million each through its Diageo Finance plc subsidiary.
The first series of bonds will mature in 2032 and carries an annual interest rate, or coupon, of 3.250%.
A second series is due in 2037 and will pay a higher coupon of 3.750%.
Diageo said the proceeds from the bond sale will be used for general corporate purposes.
The debt is fully guaranteed by the parent company, Diageo plc.
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Diageo on Monday named former Tesco chief Sir Dave Lewis as its new chief executive, tasking the consumer industry veteran with turning around performance at the world's largest spirits maker.
Diageo reported flat organic sales for its first quarter and cut its full-year outlook, citing weak demand in the U.S. and for its Chinese white spirits.
Diageo announced Wednesday that Chief Executive Debra Crew has stepped down with immediate effect by mutual agreement, ending a tenure of just over a year.