By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, March 8 – Johnson & Johnson said its wholly owned subsidiary, Kenvue Inc., priced $7.75 billion of senior notes (A1/A) in eight parts on Wednesday, according to a news release and details from a market source.
The notes included
• $750 million of 5.5% senior notes due 2025 with a spread of 45 basis points over Treasuries. Price talk was in the 70 bps area;
• $750 million of 5.35% senior notes due 2026 with a spread of 60 bps over Treasuries versus talk in the 85 bps area;
• $1 billion of 5.05% senior notes due 2028 with a spread of 75 bps over Treasuries versus talk in the 100 bps area;
• $1 billion of 5% senior notes due 2030 with a spread of 85 bps over Treasuries compared to talk in the 115 bps area over Treasuries;
• $1.25 billion of 4.9% senior notes due 2033 with a spread over Treasuries of 95 bps versus talk in the 125 bps area;
• $750 million of 5.1% senior notes due 2043 with a spread over Treasuries of 100 bps compared to talk in the 130 bps area;
• $1.5 billion of 5.05% senior notes due 2053 with a spread of 120 bps over Treasuries versus talk in the 150 bps area; and
• $750 million of 5.2% senior notes due 2063 at 135 bps over Treasuries compared to talk in the 165 bps area.
Bookrunners were Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC.
Investor calls for the issue were held on Tuesday, the source said.
Johnson & Johnson will guarantee the notes, which were sold via Rule 144A and Regulation S. The guarantees will terminate upon the completion in all material respects of the transfer of the assets and liabilities of Johnson & Johnson’s Consumer Health Business to Kenvue and Kenvue having registered equity securities.
The notes were issued in connection with Johnson & Johnson’s separation of its Consumer Health Business, and Kenvue intends to use the proceeds as partial consideration to Johnson & Johnson for the Consumer Health Business. Closing of the notes is not contingent on completion of the separation of the Consumer Health Business and is expected on March 22.
Johnson & Johnson is a consumer products company based in New Brunswick, N.J.
| Issuer: | Kenvue Inc.
|
| Guarantor: | Johnson & Johnson
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| Amount: | $7.75 billion
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| Issue: | Senior notes
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| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC
|
| Pricing date: | March 8
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| Settlement date: | March 22
|
| Ratings: | Moody’s: A1
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| S&P: A
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| 2025 notes
|
| Amount: | $750 million
|
| Maturity: | March 22, 2025
|
| Coupon: | 5.5%
|
| Spread: | Treasuries plus 45 bps
|
| Price talk: | Treasuries plus 70 bps area
|
|
|
| 2026 notes
|
| Amount: | $750 million
|
| Maturity: | March 22, 2026
|
| Coupon: | 5.35%
|
| Spread: | Treasuries plus 60 bps
|
| Price talk: | Treasuries plus 85 bps area
|
|
|
| 2028 notes
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| Amount: | $1 billion
|
| Maturity: | March 22, 2028
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| Coupon: | 5.05%
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| Spread: | Treasuries plus 75 bps
|
| Price talk: | Treasuries plus 100 bps area
|
|
|
| 2030 notes
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| Amount: | $1 billion
|
| Maturity: | March 22, 2030
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| Coupon: | 5%
|
| Spread: | Treasuries plus 85 bps
|
| Price talk: | Treasuries plus 115 bps area
|
|
|
| 2033 notes
|
| Amount: | $1.25 billion
|
| Maturity: | March 22, 2033
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| Coupon: | 4.9%
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| Spread: | Treasuries plus 95 bps
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| Price talk: | Treasuries plus 125 bps area
|
|
|
| 2043 notes
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| Amount: | $750 million
|
| Maturity: | March 22, 2043
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| Coupon: | 5.1%
|
| Spread: | Treasuries plus 100 bps
|
| Price talk: | Treasuries plus 130 bps area
|
|
|
| 2053 notes
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| Amount: | $1.5 billion
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| Maturity: | March 22, 2053
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| Coupon: | 5.05%
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| Spread: | Treasuries plus 120 bps
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| Price talk: | Treasuries plus 150 bps area
|
|
|
| 2063 notes
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| Amount: | $750 million
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| Maturity: | March 22, 2063
|
| Coupon: | 5.2%
|
| Spread: | Treasuries plus 135 bps
|
| Price talk: | Treasuries plus 165 bps area
|
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