By Cristal Cody
Tupelo, Miss., March 24 – Kimberly-Clark Corp. priced $750 million of 3.1% 10-year senior notes (A2/A) on Tuesday at a spread of Treasuries plus 225 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
Initial price talk was in the Treasuries plus 275 bps area with guidance tightened to the 230 bps area.
The notes were sold at 99.923 to yield 3.109%.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the active bookrunners. BBVA Securities Inc., RBC Capital Markets, LLC and U.S. Bancorp Investments, Inc. were passive bookrunners.
Proceeds will be used for general corporate purposes, including to repay a portion of the company’s commercial paper.
The consumer paper products company is based in Irving, Tex.
| Issuer: | Kimberly-Clark Corp.
|
| Amount: | $750 million
|
| Description: | Senior notes
|
| Maturity: | March 26, 2030
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC (active); BBVA Securities Inc., RBC Capital Markets, LLC and U.S. Bancorp Investments, Inc. (passive)
|
| Coupon: | 3.1%
|
| Price: | 99.923
|
| Yield: | 3.109%
|
| Spread: | Treasuries plus 225 bps
|
| Call features: | Make-whole call before Dec. 26, 2029 at price equal to greater of par and Treasuries plus 35 bps; thereafter at par
|
| Change-of-control put: | 101%
|
| Trade date: | March 24
|
| Settlement date: | March 26
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 230 bps area, plus or minus 5 bps; initial talk at Treasuries plus 275 bps area
|
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