By Paul A. Harris
Portland, Ore., March 23 – Embecta Corp. priced a $200 million issue of 6¾% eight-year senior secured notes (Ba3/B+) at 98.517 to yield 7% in a Wednesday drive-by, according to market sources.
The yield printed in the middle of yield talk in the 7% area but wide to initial guidance in the high-6% area.
Left bookrunner Morgan Stanley & Co. LLC will bill and deliver.
The 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.
| Issuer: | Embecta Corp.
|
| Amount: | $200 million
|
| Issue: | Senior secured notes
|
| Maturity: | Feb. 15, 2030
|
| Bookrunner: | Morgan Stanley & Co. LLC (bill and deliver)
|
| Coupon: | 6¾%
|
| Price: | 98.517
|
| Yield: | 7%
|
| Spread: | 467 bps
|
| First call: | Feb. 15, 2027 at 101.688
|
| Trade date: | March 23
|
| Settlement date: | April 1
|
| Ratings: | Moody's: Ba3
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7% area
|
| Marketing: | Drive-by
|
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