By Cristal Cody
Chicago, Feb. 23 – Solventum Corp. priced $6.9 billion of notes in a six-tranche offering (Baa3/BBB-/BBB-) on Friday to prepare for the spinoff of the company from 3M, according to a market source.
The deal includes:
• $1 billion of 5.45% notes due Feb. 25, 2027, priced at Treasuries plus 100 basis points after initial price in the Treasuries plus 125 bps area;
• $1.5 billion of 5.4% notes due March 1, 2029, priced at Treasuries plus 115 bps after initial price talk in the Treasuries plus 140 bps area;
• $1 billion of 5.45% notes due March 13, 2031, priced at Treasuries plus 120 bps after initial price talk in the Treasuries plus 145 bps area;
• $1.65 billion of 5.6% notes due March 23, 2034, priced at Treasuries plus 135 bps after initial price talk in the Treasuries plus 160 bps area;
• $1.25 billion of 5.9% notes due April 30, 2054, priced at Treasuries plus 155 bps after initial price talk in the Treasuries plus 180 area; and
• $500 million of 6% notes due May 15, 2064, priced at Treasuries plus 165 bps after initial price talk in the Treasuries plus 190 bps area.
BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the arrangers.
Proceeds will be used to support the spinoff of the health care business, including paying a distribution to 3M.
There will be a special mandatory redemption at 101 if the spinoff is not completed. The anticipated date for the transaction is April 1.
The new health care company will be based in Maplewood, Minn.
| Issuer: | Solventum Corp.
|
| Amount: | $6.9 billion
|
| Issue: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Call features: | Special mandatory redemption at 101 if spinoff is not completed
|
| Trade date: | Feb. 23
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Marketing: | Investor calls
|
|
|
| Notes due 2027
|
| Amount: | $1 billion
|
| Maturity: | Feb. 25, 2027
|
| Coupon: | 5.45%
|
| Spread: | Treasuries plus 100 bps
|
| Price talk: | Treasuries plus 125 bps area
|
|
|
| Notes due 2029
|
| Amount: | $1.5 billion
|
| Maturity: | March 1, 2029
|
| Coupon: | 5.4%
|
| Spread: | Treasuries plus 115 bps
|
| Price talk: | Treasuries plus 140 bps area
|
|
|
| Notes due 2031
|
| Amount: | $1 billion
|
| Maturity: | March 13, 2031
|
| Coupon: | 5.45%
|
| Spread: | Treasuries plus 120 bps
|
| Price talk: | Treasuries plus 145 bps area
|
|
|
| Notes due 2034
|
| Amount: | $1.65 billion
|
| Maturity: | March 23, 2034
|
| Coupon: | 5.6%
|
| Spread: | Treasuries plus 135 bps
|
| Price talk: | Treasuries plus 160 bps area
|
|
|
| Notes due 2054
|
| Amount: | $1.25 billion
|
| Maturity: | April 30, 2054
|
| Coupon: | 5.9%
|
| Spread: | Treasuries plus 155 bps
|
| Price talk: | Treasuries plus 180 bps area
|
|
|
| Notes due 2064
|
| Amount: | $500 million
|
| Maturity: | May 15, 2064
|
| Coupon: | 6%
|
| Spread: | Treasuries plus 165 bps
|
| Price talk: | Treasuries plus 190 bps area
|
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