Kimberly-Clark completes $4.9 billion financing for proposed Kenvue acquisition

Kimberly-Clark ($KMB) completed a $4.9 billion private offering of senior unsecured notes to help finance its proposed acquisition of Kenvue ($KVUE). The debt was issued in five tranches, with maturities in 2028, 2029, 2031, 2034 and 2036. Coupons range from 5.10% to 5.80%, establishing borrowing costs across the different repayment dates.

The company intends to combine the proceeds with available cash and possible commercial-paper borrowing to fund the acquisition’s cash consideration and related expenses. Any remaining proceeds may be used for general corporate purposes. Completing the debt sale advances the financing arrangements, but the Kenvue acquisition remains subject to customary closing conditions. Management’s expectation of subsequent deleveraging depends on future earnings, cash generation and synergies; it is not a reduction in debt already achieved by this issuance.

Sources:

• PR Newswire
• investor.kimberly-clark.com