UPDATE 1-Pernod completes 800 mln euro bond issue

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LONDON/PARIS, May 28 (Reuters) - Pernod Ricard (PERP.PA: Quote, Profile, Research), the world's second largest spirits group, completed its 800 million euro ($1.1 billion) long-dated five-year bond issue on Thursday to help pay down loans and extend its debt maturity.

Final guidance was set at mid-swaps plus 400 basis points, at the tight end of a refined 400 to 425 basis points range, thanks to the "size and quality of the subscription", with a 5.25 billion euro book of orders, Pernod said.

Guidance had initially been set at mid-swaps plus 425 to 440 basis points and was cut on strong demand, said IFR Markets, a Thomson Reuters online news and market analysis service.

"This transaction enabled the company to benefit from issuance conditions which significantly improved during the last weeks, and diversify its sources of finance," Pernod said in a statement.

"The proceeds of the issue will be used to pay down the shortest-term tranches of the syndicated loan, thus extending the maturity of the group's debt."

The sale of the bond, due to mature in Jan. 2015, is being managed by Deutsche Bank, Natixis, Royal Bank of Scotland and Societe Generale.

Pernod is rated Ba1 by Moody's Investors Service and BB+ by both Standard & Poor's and Fitch Ratings. ($1=.7172 euros) (Reporting by James Regan and Natalie Harrison; Editing by Greg Mahlich)