Embecta driving by with $200 million eight-year secured notes; initial talk high-6% area

By Paul A. Harris

Portland, Ore., March 23 – Embecta Corp. plans to price a $200 million offering of eight-year senior secured notes (expected ratings Ba3/B+) in a Wednesday drive-by trailing a conference call with investors, according to market sources.

Initial guidance has the deal coming to yield in the high-6% area, according to a sellside source.

Left bookrunner Morgan Stanley & Co. LLC will bill and deliver.

The Rule 144A and Regulation S for life notes become callable after five years at par plus 25% of the coupon.

Proceeds will be used to fund the spinoff of Embecta, a Franklin Lakes, N.J.-based medical technology company, from Becton, Dickinson and Co., and will be used by Becton in a debt-for-debt exchange in conjunction with the spinoff.

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