New Issue: Kimberly-Clark prices $600 million of 1.05% seven-year notes with 58 bps spread

By Cristal Cody

Tupelo, Miss., Sept. 8 – Kimberly-Clark Corp. priced $600 million of 1.05% seven-year senior notes (A2/A) on Tuesday at par to yield a spread of Treasuries plus 58 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 85 bps to 90 bps area.

Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and Morgan Stanley & Co. LLC were the active bookrunners. Credit Suisse Securities (USA) LLC was passive.

The company plans to use proceeds from the offering for its Softex Indonesia acquisition.

The consumer paper products company is based in Irving, Tex.

Issuer:	Kimberly-Clark Corp.
Amount:	$600 million
Description:	Senior notes
Maturity:	Sept. 15, 2027
Bookrunners:	Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and Morgan Stanley & Co. LLC (active); Credit Suisse Securities (USA) LLC (passive)
Senior co-managers:	Santander Investment Securities Inc. and Standard Chartered Bank
Co-managers:	Loop Capital Markets LLC, BBVA Securities Inc., J.P. Morgan Securities LLC, MUFG, RBC Capital Markets, LLC and SMBC Nikko Securities America, Inc.
Coupon:	1.05%
Price:	Par
Yield:	1.05%
Spread:	Treasuries plus 58 bps
Call features:	Make-whole call before July 15, 2027 at price equal to greater of par and Treasuries plus 10 bps; thereafter at par; special mandatory redemption at 101% if Softex Indonesia acquisition does not close by March 31, 2021
Change-of-control put:	101%
Trade date:	Sept. 8
Settlement date:	Sept. 11
Ratings:	Moody’s: A2
	S&P: A
Distribution:	SEC registered
Price guidance:	Treasuries plus 85 bps-90 bps area

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