Embecta starts roadshow for $500 million eight-year secured notes; initial talk high 4% area to 5%

By Paul A. Harris

Portland, Ore., Jan. 24 – Embecta Corp. started a roadshow on Monday for a $500 million offering of eight-year senior secured notes (expected ratings Ba3/B+), according to market sources.

The deal was scheduled to kick off on a conference call with investors set to begin at 12:45 p.m. ET on Monday.

Initial guidance is in the high 4% area to 5%.

The Rule 144A and Regulation S for life notes are expected to price on Friday.

Left bookrunner Morgan Stanley & Co. LLC will bill and deliver. BNP Paribas Securities Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG, USBI and Wells Fargo Securities LLC are the joint bookrunners.

Citizens Capital Markets Inc., Loop Capital Markets LLC, PNC Capital Markets LLC, Santander Investment Securities Inc. and Siebert Williams Shank & Co. LLC are the co-managers.

The notes come with five years of call protection.

Proceeds will be used to fund Becton, Dickinson and Co.'s spinoff of its diabetes care business, expected to close in the second quarter of 2022, to fund a distribution to Becton, Dickinson, and for general corporate purposes.

The new company, Embecta, will be based in Franklin Lakes, N.J.

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