By Paul A. Harris
Portland, Ore., Oct. 2 – Halyard Health, Inc. priced a $250 million issue of eight-year senior notes (B2/B+/) at par to yield 6¼% on Thursday, according to a syndicate source.
The yield printed on top of yield talk.
Early guidance was 6% to 6 1/8%, according to a bond trader.
Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and RBC Capital Markets were the joint bookrunners.
The deal is part of the financing for Kimberly-Clark Corp.’s spinoff of its Halyard Health subsidiary, which is set to close at the end of October.
Debt financing for the spinoff also includes $640 million of bank debt.
Alpharetta, Ga.-based Halyard Health is a health care company focused on preventing infection, eliminating pain and speeding recovery.
| Issuer: | Halyard Health, Inc.
|
| Amount: | $250 million
|
| Maturity: | Oct. 15, 2022
|
| Securities: | Senior notes
|
| Bookrunners: | Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBC Capital Markets
|
| Co-managers: | BBVA, BMO Securities, MUFG, U.S. Bancorp Investments Inc.
|
| Coupon: | 6¼%
|
| Price: | Par
|
| Yield: | 6¼%
|
| Spread: | 398.5 bps
|
| First call: | Oct. 15, 2017 at 104.688
|
| Trade date: | Oct. 2
|
| Settlement date: | Oct. 17
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
| Price talk: | 6¼% area
|
| Marketing: | Roadshow
|
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