Kimberly-Clark is scheduling investor calls for Friday while weighing a bond issue as its acquisition of Tylenol maker Kenvue gets closer to the finish line. The calls are being organized by JPMorgan Chase, according to a person familiar with the matter who requested anonymity because the details are private.
The same person said a possible sale could come in five slices with maturities spanning roughly two to 10 years.
To support Kimberly-Clark's planned cash and stock purchase of Kenvue, JPMorgan arranged $7.7 billion in bridge loans. Bridge loans are often taken out with proceeds from bonds, and new debt would help fund a transaction currently estimated at about $36 billion. That total includes $6.7 billion of cash that would partly be sourced from fresh bond issuance.
The transaction is slated to close by the end of this year.
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Corporate borrowers have recently paused many high grade offerings as Treasury yields swung on stronger than expected inflation readings and jitters around the artificial intelligence trade. Kimberly-Clark's third quarter report lands on Nov. 5, and issuers typically avoid selling bonds in the roughly two weeks before releasing results.
When the Kleenex owner unveiled the agreement last November, it said the combined company would generate $32 billion in revenue and vault past Unilever to become the No. 2 health and wellness seller behind Procter & Gamble. Kenvue's lineup includes brands such as Band-Aid wound care, Neutrogena lotion, Benadryl allergy medicine, and Listerine mouthwash.
If Kimberly-Clark brings a deal now, it would land in a choppy bond market, where swings in rates have been reshaping new issue pricing. The blackout ahead of its Nov. 5 earnings date also narrows the window, which could influence timing, size, and coupons - and how the new paper stacks up against your current credit holdings.
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