Neogen plans to price $350 million eight-year notes on Wednesday whispered in high 8% area

By Paul A. Harris

Portland, Ore., July 5 – Neogen Corp. plans to price a $350 million offering of senior notes due July 2030 (expected ratings B2/BB) on Wednesday, according to market sources.

The deal, which was set to kick off on a Tuesday conference call with investors, is being whispered in the high 8% area, according to a sellside source.

Goldman Sachs & Co. LLC is the left bookrunner. J.P. Morgan Securities LLC is the joint bookrunner.

The Rule 144A and Regulation S eight-year notes become callable after five years at par plus 50% of the coupon.

The issuing entity will be Garden SpinCo Corp.

The notes will be issued to 3M in connection with a debt-for-debt exchange. Neogen will not receive any proceeds.

Last December Neogen, a Lancing, Mich.-based food safety company, announced it would form a combination with 3M's Food Safety Business.

The notes will be subject to a special mandatory redemption at par if the transaction does not occur by March 13, 2023.

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