Johnson & Johnson, the AAA rated maker of health-care products, is planning to sell $3.25 billion of 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 six portions of 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 $400 million of bonds maturing in three years to yield 18 basis points more than similar-maturity Treasuries, $600 million of five-year debt at a relative yield of 28 basis points, $550 million of 10-year securities at a 58 basis-point spread, $650 million of 20-year bonds at 55 basis points, and $500 million of 30-year debt at 65 basis points, said the person, who asked not to be identified because terms aren't set. It may also issue $550 million of three-year, floating-rate notes to yield 7 basis points more than the three-month London interbank offered rate.
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