Kenvue (NYSE: KVUE) stock saw a modest increase in pre-market trading Thursday after the company revealed pricing for its secondary offering.
Kenvue (NYSE: KVUE), a consumer health company, recently disclosed the pricing details of its previously announced secondary underwritten public offering. The company has priced 182,329,550 (182.32 million) shares of its common stock at a public offering price of $20.00 per share. The transaction will conclude on May 17, 2024, pending the fulfillment or waiver of customary closing conditions.
Notably, Kenvue itself is not offloading any shares of common stock in this offering and would not derive any proceeds from the sale of the shares or the subsequent debt-for-equity exchange.
In a strategic move linked to the offering, Johnson & Johnson (NYSE: JNJ) plans to exchange the shares for indebtedness of Johnson & Johnson, which is expected to be held by Goldman Sachs & Co. LLC and J.P. Morgan. Upon the debt-for-equity exchange completion, the selling shareholders intend to sell the shares to the underwriters involved in the offering. Following this transaction, Johnson & Johnson will no longer hold any shares of Kenvue’s common stock.
The joint lead book-running managers for the offering are Goldman Sachs & Co. LLC, J.P. Morgan, and BofA Securities. In addition, Citigroup, Deutsche Bank Securities, BNP PARIBAS, HSBC, RBC Capital Markets, and UBS Investment Bank are book-running managers for the offering. Academy Securities, Ramirez & Co., Inc., R. Seelaus & Co., LLC, and Siebert Williams Shank are co-managers for the offering.
Kenvue (NYSE: KVUE) Stock Price Action
As of 08:30 a.m. (Eastern Time) Thursday, KVUE stock traded at $20.63, marking a 0.44% increase compared to the previous trading session.
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