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News Jun 26, 2017

Shearman & Sterling Advises on Reckitt Benckiser’s $7.75 Billion Bond Offering in Connection With the Acquisition of Mead Johnson Nutrition Company

Shearman & Sterling represented the initial purchasers, led by Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as global coordinators, on Reckitt Benckiser’s US dollar bond offering in connection with its acquisition of Mead Johnson Nutrition Company. The $7.75 billion senior notes offered by Reckitt Benckiser Treasury Services plc were sold by way of a private placement. 

The senior notes are guaranteed by Reckitt Benckiser Group plc comprising: $750 million aggregate principal amount of floating rate senior notes due 2022, $2.5 billion aggregate principal amount of 2.375% senior notes due 2022, $2 billion aggregate principal amount of 2.750% senior notes due 2024 and $2.5 billion aggregate principal amount of 3.000% senior notes due 2027. Reckitt Benckiser expects to use the net proceeds of the senior notes offering to refinance its bridge facility incurred in connection with its acquisition of Mead Johnson Nutrition Company.

Reckitt Benckiser is a global consumer goods leader in health, hygiene and home and is in the top 10 of FTSE 100 companies. Today it is the global No. 1 or No. 2 in the majority of its fast-growing categories, driven by an exceptional rate of innovation. Its health, hygiene and home portfolio is led by over 20 global Powerbrands, including Enfamil, Nutramigen (both added with the completion of the acquisition of Mead Johnson Nutrition Company), Nurofen, Strepsils, Gaviscon, Mucinex, Durex, Scholl, Clearasil, Lysol, Dettol, Veet, Harpic, Cillit Bang, Mortein, Finish, Vanish, Woolite, Calgon, Air Wick and French’s.

The Shearman & Sterling team was led by partner David Dixter and associates Ana Stefanovic Grbec and Minkyu Park (all London-Capital Markets). Other members of the team included partners Kristen Garry (Washington, DC-Tax) and Simon Letherman (London-Tax); and associates Adam Sternberg (New York-Tax) and Sarah Moir-Porteous (London-Tax).