CORP SNAPSHOT: Carlsberg and J&J do battle with M&A-driven jumbos

The IG corporate market is seeing a couple of headline transactions on Wednesday with Carlsberg Breweries and Johnson & Johnson emerging from the pipeline with what are set to be amongst the biggest euro corp deals of 2025.

Both are M&A-driven with Carlsberg (EUR 2yr FRN, 4.5/7/10yr FXD & GBP 14yr) raising funds for its acquisition of Britvic PLC and Johnson & Johnson (EUR 4/8/12/20/30yr FXD) following up on a dollar deal the previous session as it continues to fund its purchase of Intra-Cellular.

Wednesday’s headline trades come after just one name tapped the market Tuesday despite the upbeat tone, with Swiss-headquartered DSM-Firmenich AG extending its curve with a EUR750m (from benchmark) 11yr line ahead of an upcoming maturity.

Like Enel the previous session, DSM-Firmenich saw some attrition in the book with final demand peaking at EUR5.25bn before falling to EUR4.7bn after leads cut 40bps from IPTs to price with a negative 5bp NIC.

DSM-Firmenich put the weekly euro IG corporate issuance total at EUR2.75bn, with us set to get close to (or probably even beyond) the average estimate of EUR9.5bn given today’s activity.

Carlsberg brews a jumbo

** Danish brewer Carlsberg Breweries A/S (Baa1/BBB+) mandated BNP PARIBAS, Danske Bank, Nordea, SEB, Societe Generale and UniCredit as Joint Bookrunners to organize a series of fixed income investor calls 17-18 Feb. A EUR and GBP multi-tranche, benchmark bond offering with EUR 2yr floating rate and EUR fixed rate tranches across 4.5, 7 and 10yr tenors, as well as a GBP 14yr tenor, is now live

IPTs:

EUR 2yr (Feb 2027) FRN benchmark at 3mE +65-70

EUR 4.5yr (Aug 2029) FXD benchmark at m/s +100-105

EUR 7yr (Feb 2032) FXD benchmark at m/s +120-125

EUR 10yr (Feb 2035) FXD benchmark at m/s +140-145

GBP 14yr (Feb 2039) FXD benchmark at mid-gilts (UKT 1.125% Jan 2039) +105-110

• Expected issue ratings are Baa1 by Moody’s / BBB+ by Fitch
• As per an update Tuesday morning, the company had met with over 120 investors via group calls and a NetRoadshow
• The Joint Bookrunners have received combined Indications of Interest across the 5 tranches well in excess of EUR6.5bn equiv ahead of books opening
• Proceeds from the multi-tranche deal are to be used for the refinancing of the drawn bridge facility associated with the acquisition of Britvic PLC (ca. EUR4.2bn). The GBP3.3bn purchase was approved by the high court in Jan
• Carlsberg last tapped the euro market in Sep 2023 bringing a EUR700m Oct 2028 and EUR600m Oct 2033 two-part on combined orders worth EUR4.4bn
• Adjusting the company’s existing single currency curve (highlighted on the comps list below), bankers on and off the trade were seeing fair value for the new 4.5yr, 7yr and 10yr fixed-rate tranches at m/s +70, +90 and +110 respectively. Fair value on the sterling and the euro FRN are more tricky to pinpoint with the company having no GBP debt outstanding and us having seen no euro IG corporate floating-rate paper in 2025

EUR comparables

Ticker Rating (M/S/F) Coupon Size (mln) Issuance Dt Maturity Dt Tenor (yrs) I-Sprd (BID)

CARLB Baa1/-/BBB+ 3.50% 750 May-23 Nov-26 1.8 39

CARLB Baa1/-/BBB+ 0.38% 500 Jun-20 Jun-27 2.4 47

CARLB Baa1/-/BBB+ 4.00% 700 Oct-23 Oct-28 3.6 60

CARLB Baa1/-/BBB+ 0.88% 400 Jul-19 Jul-29 4.4 68

CARLB Baa1/-/BBB+ 0.63% 500 Mar-20 Mar-30 5.1 75

CARLB Baa1/-/BBB+ 4.25% 600 Oct-23 Oct-33 8.6 99

GBP comparables

Ticker Rating (M/S/F) Coupon Size (mln) Issuance Dt Maturity Dt Tenor (yrs) Spread vs Gilt (bid)

DGELN A3/A-/A-u 1.25% 400 Sep-20 Mar-33 8.1 32

DGELN A3/A-/A-u 2.75% 600 Apr-22 Jun-38 13.3 54

CPGLN A2/A/- 4.38% 250 Sep-22 Sep-32 7.6 48

EXPNLN A3/A-/- 3.25% 400 Apr-20 Apr-32 7.1 57

RKTLN A3/A-/- 1.75% 500 May-20 May-32 7.3 50

RKTLN A3/A-/- 5.63% 300 Sep-23 Dec-38 13.8 60

HLNLN Baa1/BBB+/- 4.63% 300 Sep-24 Sep-33 8.6 75

HLNLN Baa1/BBB+/- 3.38% 400 Mar-22 Mar-38 13.1 68

MCD Baa1/BBB+/WD 2.95% 300 Mar-19 Mar-34 9.1 58

MCD Baa1/BBB+/- 3.75% 400 May-22 May-38 13.3 70

KERFP -/BBB+/- 5.00% 400 Nov-23 Nov-32 7.8 97

PSON Baa2/-/BBB 3.75% 350 Jun-20 Jun-30 5.3 82

PSON Baa2/-/BBB 5.38% 350 Sep-24 Sep-34 9.6 94

SBRYLN Baa3/BBB/- 5.13% 250 Jan-25 Jun-30 5.4 89

SBRYLN Baa3/BBB/- 5.63% 300 Jan-25 Jan-35 10.0 105

TSCOLN Baa3/BBB-/BBB- 5.13% 350 May-24 May-34 9.3 109

TSCOLN Baa3/BBB-/BBB- 5.50% 250 Feb-23 Feb-35 10.0 106

J&J turns attention to euros for more M&A funding

** US pharmaceutical company Johnson & Johnson (Aaa/AAA) on Tuesday mandated Citigroup, Deutsche Bank and Goldman Sachs & Co LLC to act as Joint Book-Running Managers on a potential SEC-registered EUR (4yr, 8yr, 12yr, 20yr & 30yr) multi-tranche fixed-rate senior unsecured benchmark transaction. The deal is now live

IPTs:

EUR 4yr (Feb 2029) benchmark at m/s +75-80

EUR 8yr (Feb 2033) benchmark at m/s +100 area

EUR 12yr (Feb 2037) benchmark at m/s +120 area

EUR 20yr (Feb 2045) benchmark at m/s +145 area

EUR 30yr (Feb 2055) benchmark at m/s +175-180

• Expected to be rated Aaa by Moody´s / AAA by S&P
• Total transaction size is to be max EUR4bn, which would overtake IBM’s EUR3.5bn four-part trade on 5-Feb as the biggest euro IG corporate trade of 2025
• The deal comes on the heels of a USD5bn 2/3/5/7/10yr five-part in the US on Tuesday which landed with NICs of 7-10bps. See IGM’s THE ENDGAME for more details of all Tuesday’s US primary bond activity
• Proceeds from both the dollar transaction and today’s euro lines are to be used to fund the company’s recently announced USD14.6bn acquisition of biopharmaceutical company Intra-Cellular, and for general corporate purposes. The acquisition is subject to applicable regulatory approvals, approval by Intra-Cellular's stockholders and other customary closing conditions
• The new euro transaction includes the first senior unsecured single currency 30yr tranche from a corporate issuer since Merck & Co Inc Rahway NJ USA included the tenor in its EUR3.4bn four-part trade last May. Before that, the last 30yr senior tranche seen in the asset class was in 2021
• J&J hit the euro market once last year, bringing a EUR700m Jun 2032, EUR800m Jun 2036 & EUR1bn Jun 2044 three-part in May in what was its first single currency offering since back in 2016. Combined demand for the EUR2.5bn trade finished up at EUR4bn
• The 2024 issued tranches were included on the official comps list sent yesterday along with the company’s dollar bonds and the issues of various sector peers
• Adjusting the curve accordingly, we saw fair value for the new 4yr, 8yr, 12yr and 20yr lines at m/s +35, +60, +80 and +100-105 respectively, whilst it is a bit more difficult to pinpoint on the longer 30yr tranche given the aforementioned paucity of outstanding debt at the tenor

*** EUR Pharma / High Quality Secondaries (indicative bid-side) ***

>>> JNJ EUR Bonds

Bond Rating (M/S&P) Issue Dt. Amt. Tenor I-Spread

JNJ 1.150 11/28 Aaa / AAA *- May-16 €750mm 3.8yr ms+17bp

JNJ 3.200 6/32 Aaa / AAA *- May-24 €700mm 7.3yr ms+57bp

JNJ 3.350 6/36 Aaa / AAA *- May-24 €800mm 11.3yr ms+76bp

JNJ 3.550 6/44 Aaa / AAA *- May-24 €1000mm 19.3yr ms+100bp

>>> JNJ USD Bonds

Bond Rating (M/S&P) Issue Dt. Amt. Tenor Spread

JNJ 4.800 6/29 Aaa / AAA *- May-24 €1150mm 4.3yr UST+16/ G+18 (Equiv. €ms+24)

JNJ 4.900 6/31 Aaa / AAA *- May-24 €1150mm 6.3yr UST+34/ G+30 (Equiv. €ms+42)

JNJ 4.950 6/34 Aaa / AAA *- May-24 €850mm 9.3yr UST+35/ G+38 (Equiv. €ms+57)

JNJ 5.250 6/54 Aaa / AAA *- May-24 €850mm 29.3yr UST+60/ G+60 (Equiv. €ms+112)

>>> High Quality Healthcare EUR Bonds

Bond Rating (M/S&P) Issue Dt. Amt. Tenor I-Spread

NOVOB 3.125 1/29 Aa3 / AA- May-24 €1000mm 3.9yr ms+44bp

NOVOB 3.250 1/31 Aa3 / AA- May-24 €1000mm 5.9yr ms+58bp

NOVOB 3.375 5/34 Aa3 / AA- May-24 €1350mm 9.3yr ms+78bp

ROSW 3.204 8/29 Aa2 / AA Feb-23 €750mm 4.5yr ms+35bp

ROSW 3.227 5/30 Aa2 / AA May-24 €650mm 5.2yr ms+39bp

ROSW 3.355 2/35 Aa2 / AA Feb-23 €500mm 10.0yr ms+68bp

ROSW 3.586 12/36 Aa2 / AA Dec-23 €900mm 11.8yr ms+80bp

ROSW 3.564 5/44 Aa2 / AA May-24 €850mm 19.2yr ms+102bp

>>> Other Recent High Quality EUR Bonds

Bond Rating (M/S&P) Issue Dt. Amt. Tenor I-Spread

ALLRNV 3.000 10/34 Aa3 / - Oct-24 €750mm 9.7yr ms+73bp

MCFP 2.750 11/27 Aa3 / AA- Nov-24 €800mm 2.7yr ms+37bp

MCFP 3.125 11/32 Aa3 / AA- Nov-24 €700mm 7.7yr ms+58bp

MCFP 3.500 10/34 Aa3 / AA- Jun-24 €650mm 9.6yr ms+68bp

NESNVX 2.625 10/30 Aa3 / AA- Oct-24 €500mm 5.7yr ms+47bp

NESNVX 2.875 1/32 Aa3 / AA- Jan-25 €600mm 6.9yr ms+58bp

NESNVX 3.125 10/36 Aa3 / AA- Oct-24 €650mm 11.7yr ms+86bp

NESNVX 3.500 1/45 Aa3 / AA- Jan-25 €500mm 19.9yr ms+113bp

ORFP 2.500 11/27 Aa1 / AA Nov-24 €750mm 2.7yr ms+32bp

ORFP 2.875 11/31 Aa1 / AA Nov-24 €500mm 6.7yr ms+50bp

Boston Scientific Corp mandates two-part

** US medical devices manufacturer Boston Scientific Corporation (Baa1/BBB+/BBB+) this morning mandated Barclays, Citigroup, and Wells Fargo Securities to organize a series of European fixed income investor calls on Thursday 20-Feb ahead of an SEC-registered EUR 6yr and 9yr two-part benchmark

• The transaction will be issued through the company's Dutch subsidiary American Medical Systems Europe B.V, fully and unconditionally guaranteed by Boston Scientific Corporation
• Boston Scientific Corporation intends to use the net proceeds of the offering, together with cash on hand, to fund the repayment at maturity of AMS’s EUR1bn 0.75% senior notes due 8-Mar-2025 and for general corporate purposes which may include, among other things, short term investments, reduction of short-term debt, funding of working capital and potential future acquisitions
• The company also issued euro paper in Feb last year, printing EUR750m 3.375% Mar 2029s and EUR1.25bn 3.5% Mar 2032s into combined books of EUR7.5bn. Those were trading on screens at i +68 and +85 bid respectively on screens this morning

Already in the pipeline

** TCC Group Holdings CO LTD (BBB-/BBB-), an ESG-centric leading cement group and the largest cement manufacturer in Taiwan, the Republic of China with main business segments consisting of cement, electricity, energy, waste management and maritime transportation, has mandated Credit Agricole CIB as the Sole Green Structuring Advisor, and together with Deutsche Bank as Joint Global Coordinators, Joint Bookrunners and Joint Lead Managers, as well as DBS Bank Ltd as Joint Bookrunner and Joint Lead Manager to arrange a series of fixed income investor calls on 13-14 Feb. A EUR500m no grow 5yr green trade is expected to follow. The notes will be issued by TCC Dutch Holdings B.V (incorporated as a private company with limited liability under the laws of the Netherlands) and unconditionally and irrevocably guaranteed by TCC Group Holdings Co Ltd. (incorporated as a company limited by shares in Taiwan, the Republic of China). An amount equivalent to the net proceeds from the issuance of the notes will be used to finance or refinance, in part or in full, eligible green projects that meet the eligibility criteria set out in the TCC Group Holdings Green Financing Framework

Performance tracker of recent EUR IG/split-rated benchmark deals

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