Kimberly-Clark has completed a $4.9 billion private offering of senior unsecured notes as the company prepares to finance its proposed acquisition of Kenvue.
The offering consists of five tranches with maturities extending from 2028 through 2036.
Kimberly-Clark issued $750 million of 5.1% notes due 2028, $1 billion of 5.3% notes due 2029, $1.25 billion of 5.45% notes due 2031, $750 million of 5.65% notes due 2034, and $1.15 billion of 5.8% notes due 2036.
The company intends to use the net proceeds together with cash on hand and/or borrowings under its commercial paper program to finance the cash portion of its proposed Kenvue acquisition and pay associated transaction fees and expenses.
Any remaining proceeds are expected to be used for general corporate purposes.
The Kenvue transaction remains subject to customary closing conditions.
Kimberly-Clark said the financing is intended to create an opening capital structure with sufficient financial flexibility for the combined company while supporting an accelerated deleveraging plan following completion of the acquisition.
The company expects synergy-driven earnings growth, free cash flow generation, and scheduled debt maturities to support a reduction in leverage toward levels consistent with its current credit ratings.
The notes were privately offered to qualified institutional buyers under Rule 144A and to certain non-U.S. investors under Regulation S.
Kimberly-Clark’s portfolio includes Huggies, Kleenex, Scott, Cottonelle, Kotex, Poise, Depend, Pull-Ups, Goodnites, and other consumer brands sold across more than 175 countries and territories.
The financing represents a major component of the capital structure supporting one of Kimberly-Clark’s most significant strategic transactions.
KEY QUOTES:
“This transaction marks another milestone in the creation of a global consumer health and wellness leader.”
“The new company offers an opening balance sheet structured for financial flexibility, consistent with Kimberly-Clark’s long-track record of disciplined capital management.”
Nelson Urdaneta, Chief Financial Officer Of Kimberly-Clark
