Embecta talks $500 million eight-year secured notes at 5% area yield; pricing Thursday

By Paul A. Harris

Portland, Ore., Jan. 27 – Embecta Corp. talked its $500 million offering of eight-year senior secured notes (Ba3/B+) to yield in the 5% area, according to market sources.

Official talk comes at the wide end of initial guidance in the high 4% area to 5%.

Books close at noon ET on Thursday, and the Rule 144A and Regulation S for life deal is set to price thereafter.

Left bookrunner Morgan Stanley & Co. LLC will bill and deliver. BNP Paribas Securities Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG, U.S. Bancorp Investments Inc. 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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