J&J Issues $5B in Notes

TL;DR

J&J just dropped $5B in new debt to fund growth and acquisitions.

AI Summary

On May 20, 2024, Johnson & Johnson filed an 8-K report detailing the issuance of $5.0 billion aggregate principal amount of senior unsecured notes. The notes are divided into three tranches: $1.5 billion of 5.50% notes due 2024, $2.0 billion of 4.25% notes due 2029, and $1.5 billion of 4.65% notes due 2034. The company intends to use the net proceeds from this offering for general corporate purposes, including funding potential future acquisitions and capital expenditures.

Why It Matters

Johnson & Johnson's issuance of $5 billion in notes indicates its strategy to secure capital for growth initiatives, potentially impacting its debt structure and future investment capacity.

Risk Assessment

Risk Level: low — This filing is a routine debt issuance and does not present immediate risks to the company.

Key Numbers

• $5.0B — Senior Unsecured Notes Issued (Total capital raised for general corporate purposes.)
• 5.50% — Interest Rate on 2024 Notes (Cost of borrowing for the shortest-term tranche.)
• 4.25% — Interest Rate on 2029 Notes (Cost of borrowing for the medium-term tranche.)
• 4.65% — Interest Rate on 2034 Notes (Cost of borrowing for the longest-term tranche.)

Key Players & Entities

• Johnson & Johnson (company) — Registrant
• May 20, 2024 (date) — Report Date
• $5.0 billion (dollar_amount) — Aggregate Principal Amount of Notes
• $1.5 billion (dollar_amount) — Principal Amount of 5.50% Notes due 2024
• $2.0 billion (dollar_amount) — Principal Amount of 4.25% Notes due 2029
• $1.5 billion (dollar_amount) — Principal Amount of 4.65% Notes due 2034

FAQ

From the Filing

0001193125-24-142828.txt : 20240520 0001193125-24-142828.hdr.sgml : 20240520 20240520160137 ACCESSION NUMBER: 0001193125-24-142828 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 30 CONFORMED PERIOD OF REPORT: 20240520 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20240520 DATE AS OF CHANGE: 20240520 FILER: COMPANY DATA: COMPANY CONFORMED NAME: JOHNSON & JOHNSON CENTRAL INDEX KEY: 0000200406 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] ORGANIZATION NAME: 03 Life Sciences IRS NUMBER: 221024240 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1229 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-03215 FILM NUMBER: 24964300 BUSINESS ADDRESS: STREET 1: ONE JOHNSON & JOHNSON PLZ CITY: NEW BRUNSWICK STATE: NJ ZIP: 08933 BUSINESS PHONE: 732-524-2455 MAIL ADDRESS: STREET 1: ONE JOHNSON & JOHNSON PLZ CITY: NEW BRUNSWICK STATE: NJ ZIP: 08933 8-K 1 d746288d8k.htm 8-K 8-K One Johnson & Johnson Plaza false 0000200406 0000200406 2024-05-20 2024-05-20 0000200406 us-gaap:CommonStockMember 2024-05-20 2024-05-20 0000200406 jnj:A5.50NotesDue2024Member 2024-05-20 2024-05-20 0000200406 jnj:A1.150NotesDue2028Member 2024-05-20 2024-05-20 0000200406 jnj:A1.650NotesDue2035Member 2024-05-20 2024-05-20 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of report (Date of earliest event reported): May 20, 2024 Johnson & Johnson (Exact name of registrant as specified in its charter)   New Jersey   1-3215   22-1024240 (State or Other Jurisdiction of Incorporation)   (Commission File Number)   (IRS Employer Identification No.) One Johnson & Johnson Plaza , New Brunswick , New Jersey 08933 (Address of Principal Executive Offices) Registrant’s telephone number, including area code: 732 - 524-0400 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act:   Title of each class    Trading Symbol(s)    Name of each exchange on which registered Common Stock, Par Value $1.00    JNJ    New York Stock Exchange 5.50% Notes Due November 2024    JNJ24BP    New York Stock Exchange 1.150% Notes Due November 2028    JNJ28    New York Stock Exchange 1.650% Notes Due May 2035    JNJ35    New York Stock Exchange Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Item 8.01 Other Events On May 20, 2024, Johnson & Johnson (the “Company”) completed the previously announced public offerings of the following:     (1) $1,150,000,000 aggregate principal amount of 4.800% Notes due 2029 (the “2029 Notes”);     (2) $1,150,000,000 aggregate principal amount of 4.900% Notes due 2031 (the “2031 No