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.
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Amount: | $250 million
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Maturity: | Oct. 15, 2022
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Securities: | Senior notes
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Bookrunners: | Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBC Capital Markets
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Co-managers: | BBVA, BMO Securities, MUFG, U.S. Bancorp Investments Inc.
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Coupon: | 6¼%
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Price: | Par
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Yield: | 6¼%
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Spread: | 398.5 bps
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First call: | Oct. 15, 2017 at 104.688
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Trade date: | Oct. 2
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Settlement date: | Oct. 17
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Ratings: | Moody's: B2
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| Standard & Poor's: B+
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Distribution: | Rule 144A with registration rights and Regulation S
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Price talk: | 6¼% area
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Marketing: | Roadshow
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