By Cristal Cody
Tupelo, Miss., May 22 – Becton, Dickinson & Co. sold $9,675,000,000 of senior notes in seven tranches on Monday, according to a market source.
The company priced $725 million of 2.133% two-year notes at a spread of Treasuries plus 85 basis points.
The $1 billion tranche of 2.404% three-year notes was sold with a Treasuries plus 95 bps spread.
Becton Dickinson priced $500 million of five-year floating-rate notes at Libor plus 103 bps.
The company sold $1.8 billion of 2.894% five-year fixed-rate notes at a spread of 110 bps over Treasuries.
The $1.75 billion offering of 3.363% seven-year notes was placed with a Treasuries plus 130 bps spread.
Becton Dickinson brought the $2.4 billion tranche of 3.7% 10-year notes at a 145 bps spread over Treasuries.
In the final tranche, the company priced $1.5 billion of 4.669% 30-year notes at a spread of 175 bps over Treasuries.
Citigroup Global Markets Inc., BNP Paribas Securities Corp., Barclays, MUFG and Wells Fargo Securities, LLC were the bookrunners.
Becton Dickinson held fixed income investor calls on Thursday and Friday for a dollar- and euro-denominated notes offering.
Proceeds from Monday’s offering will be used to help finance the cash portion of the company’s acquisition of C.R. Bard Inc. Proceeds also will be used to redeem various series of Becton Dickinson’s outstanding senior notes.
Becton Dickinson announced in April it plans to acquire C.R. Bard for $24 billion in cash and stock. If the deal does not close on or before April 23, 2018, Becton Dickinson will be required to redeem all of the notes at 101, plus accrued and unpaid interest.
Moody’s Investors Service gave most of the deal high-yield ratings with one tranche given a high-grade rating. Moody’s said it expects to also downgrade the Baa2 rating for the two-year notes to Ba1 if the transaction closes as proposed.
Becton Dickinson is a medical technology company based in Franklin Lakes, N.J.
| Issuer: | Becton, Dickinson and Co.
|
| Amount: | $9,675,000,000
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., BNP Paribas Securities Corp., Barclays, MUFG and Wells Fargo Securities, LLC
|
| Co-managers: | J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Trade date: | May 22
|
| Distribution: | SEC registered
|
|
|
| Two-year notes
|
| Amount: | $725 million
|
| Maturity: | June 6, 2019
|
| Coupon: | 2.133%
|
| Spread: | Treasuries plus 85 bps
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB+
|
| Fitch: BBB-
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | June 5, 2020
|
| Coupon: | 2.404%
|
| Spread: | Treasuries plus 95 bps
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB+
|
| Fitch: BBB-
|
|
|
| Five-year floaters
|
| Amount: | $500 million
|
| Maturity: | June 6, 2022
|
| Coupon: | Libor plus 103 bps
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB+
|
| Fitch: BBB-
|
|
|
| Five-year notes
|
| Amount: | $1.8 billion
|
| Maturity: | June 6, 2022
|
| Coupon: | 2.894%
|
| Spread: | Treasuries plus 110 bps
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB+
|
| Fitch: BBB-
|
|
|
| Seven-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | June 6, 2024
|
| Coupon: | 3.363%
|
| Spread: | Treasuries plus 130 bps
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB+
|
| Fitch: BBB-
|
|
|
| 10-year notes
|
| Amount: | $2.4 billion
|
| Maturity: | June 6, 2027
|
| Coupon: | 3.7%
|
| Spread: | Treasuries plus 145 bps
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB+
|
| Fitch: BBB-
|
|
|
| 30-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | June 6, 2047
|
| Coupon: | 4.669%
|
| Spread: | Treasuries plus 175 bps
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB+
|
| Fitch: BBB-
|
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