Johnson & Johnson Completes Multi-Billion Euro Notes Offering

Published 26/02/2025, 22:28
Johnson & Johnson Completes Multi-Billion Euro Notes Offering

Johnson & Johnson (NYSE:JNJ) has successfully completed its multi-billion euro public offerings of notes, as reported on Wednesday, according to a recent SEC filing. The offerings include €600 million of 2.700% notes due in 2029, €700 million of 3.050% notes due in 2033, €1 billion of 3.350% notes due in 2037, €700 million of 3.600% notes due in 2045, and €1 billion of 3.700% notes due in 2055.

The transaction, part of the company’s Registration Statement on Form S-3, was finalized with an underwriting agreement on February 19, 2025. The underwriters for this transaction were Citigroup (NYSE:C) Global Markets Limited, Deutsche Bank AG (ETR:DBKGn), London Branch, and Goldman Sachs & Co. LLC, among others.

The completion of this offering marks a significant capital raise for the New Jersey-based pharmaceutical giant, which currently operates with a moderate debt-to-equity ratio of 0.53 and maintains strong cash flows sufficient to cover interest payments. The funds from the notes are expected to be used for general corporate purposes, which may include refinancing existing debt, funding capital expenditures, or pursuing potential acquisitions. InvestingPro analysis reveals the company has maintained dividend payments for 55 consecutive years, demonstrating consistent financial stability.

The terms of the notes were established under the company’s order, with various maturity dates ranging from 2029 to 2055, and interest rates from 2.700% to 3.700%. The notes were made available through the New York Stock Exchange under different trading symbols, reflecting their respective maturity years.

Legal opinions regarding the offering were provided by Weil, Gotshal & Manges LLP and Troutman Pepper Locke LLP, as included in the SEC filing. These documents, along with the underwriting agreement and the terms of the notes, form part of the exhibits attached to the 8-K filing, underscoring the legal and regulatory framework governing the offering.

Investors and market observers will likely follow how Johnson & Johnson deploys the capital raised from this offering, as it may influence the company’s strategic initiatives and financial health in the coming years.

This report is based on a press release statement filed with the SEC.

In other recent news, Johnson & Johnson announced significant progress in the treatment of moderately to severely active ulcerative colitis with its drug TREMFYA®. The Phase 3 ASTRO study showed that TREMFYA’s subcutaneous induction therapy achieved statistically significant improvements in clinical and endoscopic measures compared to placebo. Additionally, Johnson & Johnson successfully issued $5 billion in new notes as part of a broader public offering, with proceeds potentially used for various corporate purposes. S&P Global Ratings assigned an ’AAA’ rating to these notes but placed them on CreditWatch Negative, as the funds will partially finance the $14.6 billion acquisition of Intra-Cellular Therapies (NASDAQ:ITCI) Inc.

The acquisition announcement led to an increase in Johnson & Johnson’s adjusted leverage, which S&P Global expects to decrease by the end of 2025. Furthermore, Johnson & Johnson has restarted the limited U.S. release of its VARIPULSE™ devices after an investigation confirmed their proper operation. The company plans to update the device’s Instructions for Use to provide enhanced guidance. These developments reflect the company’s ongoing strategic and operational activities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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