By Andrea Heisinger
New York, May 20 - Kimberly-Clark Corp. tapped the market for $850 million of notes (A2/A/A) in three parts, an informed source said on Monday.
A $250 million tranche of three-year floating-rate notes priced at par to yield Libor plus 12 basis points. The notes are non-callable.
There was $350 million of 2.4% 10-year notes sold at 97.76 to yield 2.656% with a spread of 70 bps over Treasuries. Initial price talk was in the 75 bps area, a source said.
There is a make-whole call at 10 bps over Treasuries.
Finally, there was $250 million of 3.7% 30-year bonds priced at 95.44 to yield 3.961% with a spread of Treasuries plus 80 bps. Initial guidance was in the 90 bps area.
The bonds have a make-whole call at 15 bps over Treasuries.
There is a change-of-control put on the two fixed-rate tranches at 101%.
Bookrunners were Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC.
Proceeds will be used for general corporate purposes, including to repay $500 million of 5% notes due Aug. 15.
Kimberly-Clark was last in the U.S. bond market with a $300 million offering of 2.4% 10-year notes priced at 68 bps over Treasuries on Feb. 6, 2012.
The consumer paper products company is based in Irving, Texas.
| Issuer: | Kimberly-Clark Corp.
|
| Issue: | Notes
|
| Amount: | $850 million
|
| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
|
| Co-managers: | Barclays, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., RBC Capital Markets, LLC
|
| Trade date: | May 20
|
| Settlement date: | May 23
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A
|
|
|
| Three-year floaters
|
| Amount: | $250 million
|
| Maturity: | May 15, 2016
|
| Coupon: | Libor plus 12 bps
|
| Price: | Par
|
| Yield: | Libor plus 12bps
|
| Call: | Non-callable
|
|
|
| 10-year notes
|
| Amount: | $350 million
|
| Maturity: | June 1, 2023
|
| Coupon: | 2.4%
|
| Price: | 97.76
|
| Yield: | 2.656%
|
| Spread: | Treasuries plus 70 bps
|
| Call: | Make-whole at Treasuries plus 10 bps
|
| Change-of-control put: | At 101%
|
| Price talk: | 75 bps area
|
|
|
| 30-year bonds
|
| Amount: | $250 million
|
| Maturity: | June 1, 2043
|
| Coupon: | 3.7%
|
| Price: | 95.44
|
| Yield: | 3.961%
|
| Spread: | Treasuries plus 80 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Change-of-control put: | At 101%
|
| Price talk: | 90 bps area
|
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