American company Johnson & Johnson (J&J) sold USD3.5 billion of bonds in its first offering since 2011. J&J is an AAA-rated health care product manufacturer.
According to a report by Bloomberg, J&J sold six portions of bonds maturing in three to 30 years. Proceeds from the bond sale will be used to repay existing debt. J&J issued USD400 million of 0.7% bonds due in three years that yield 18 basis points more than similar-maturity Treasuries. It also sold USD600 million of 1.65% bonds set to mature in five years and has a relative yield of 28 basis points, the report said.
Bloomberg said the top credit ranking company issued USD550 million of 3.375% bonds, which are 10-year securities with a 58 basis-point spread. It also sold USD650 million of 4.375% bonds, a 20-year debt that yields 55 basis points. J&J issued USD500 million of 4.5% bonds due in 30 years and at 65 basis points more than the benchmark.
The transaction also included USD800 million of three-year, floating-rate notes that yield 7 basis points more than the three-month London interbank offered rate. LIBOR, the rate in which banks say they can borrow from each other, was set at 0.24% today, the report said.
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