By Paul A. Harris
Portland, Ore., Jan. 27 – Embecta Corp. priced a $500 million issue of eight-year senior secured notes (Ba3/B+) at par to yield 5% on Thursday, according to market sources.
The yield printed in the middle of yield talk in the 5% area. Initial guidance was in the high 4% area to 5%.
Left bookrunner Morgan Stanley & Co. LLC will bill and deliver. Joint bookrunners were BNP Paribas Securities Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG, USBI and Wells Fargo Securities LLC.
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.
| Issuer: | Embecta Corp.
|
| Amount: | $500 million
|
| Issue: | Senior secured notes
|
| Maturity: | Feb. 15, 2030
|
| Left bookrunner: | Morgan Stanley & Co. LLC (bill and deliver)
|
| Joint bookrunners: | BNP Paribas Securities Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG, USBI and Wells Fargo Securities LLC
|
| Co-managers: | Citizens Capital Markets Inc., Loop Capital Markets LLC, PNC Capital Markets LLC, Santander Investment Securities Inc. and Siebert Williams Shank & Co. LLC
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Spread: | 323 bps
|
| First call: | Feb. 15, 2027 at 101.25
|
| Trade date: | Feb. 27
|
| Settlement date: | Feb. 10
|
| Ratings: | Moody's: Ba3
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 5% area
|
| Marketing: | Roadshow
|
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