Tags: Johnson andJohnson | bonds | benchmark | funding

Johnson & Johnson Said to Plan Benchmark Bonds in Six Parts

Monday, 02 Dec 2013 01:02 PM

Johnson & Johnson, the AAA rated maker of health-care products, is planning to sell six-part benchmark debt in its first offering in more than two years.

The company, one of four U.S. nonfinancial borrowers with a top credit ranking, may sell bonds maturing in three to 30 years as soon as today, according to a person with knowledge of the transaction. The deal, its first since May 2011, will be used to repay existing debt.

The world’s largest maker of health-care products may sell bonds maturing in three years to yield about 20 basis points more than similar-maturity Treasurys, five-year debt at a relative yield of about 30 basis points, 10-year securities and 20-year bonds at about 60 basis-point spreads and 30-year debt at about 70 basis points, said the person, who asked not to be identified because terms aren’t set. It may also issue three- year, floating-rate notes.

The debt is expected to be rated Aaa, the highest level of investment grade, by Moody’s Investors Service, and an equivalent AAA at Standard & Poor’s, the person said. Bank of America Corp., Goldman Sachs Group Inc. and JPMorgan Chase & Co. are managing the offering for the New Brunswick, New Jersey-based company.

Johnson & Johnson, along with Microsoft Corp., Exxon Mobil Corp. and Automatic Data Processing Inc., have the highest ratings from Moody’s and S&P. Microsoft raised $2.67 billion in April, including $1 billion of 10-year notes that yielded 3.49 percent on Nov. 25, according to data compiled by Bloomberg.

Benchmark sales are typically at least $500 million.

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Johnson & Johnson, the AAA rated maker of health-care products, is planning to sell six-part benchmark debt in its first offering in more than two years.
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2013-02-02
Monday, 02 Dec 2013 01:02 PM
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