Carlsberg, Johnson & Johnson Issue Major Buyout Debt in Europe's Primary Market
Carlsberg Breweries A/S and Johnson & Johnson have issued the first significant buyout debt of the year in Europe's primary market, boosting corporate bond sales volumes.
Carlsberg raised €4 billion ($4.1 billion) and £500 million ($628 million) to refinance bridge loan agreements related to the acquisition of Britvic Plc. Johnson & Johnson issued €4 billion across a five-part transaction to fund its takeover of Intra-Cellular Therapies Inc.
Despite expectations of a surge in M&A activity, the issuance marks a slow start to the year. The last major buyout financing in Europe was DSV A/S's €5 billion bond offering for the acquisition of DB Schenker in October 2024.
Strong investor demand has pushed down spreads, allowing companies to raise funds with minimal issuance premiums. Carlsberg secured investor orders exceeding €16.5 billion for its bond tranches and priced its 4.5 and seven-year maturities within its existing credit curve.
Johnson & Johnson, rated AAA, issued debt across 4, 8, 12, and 20-year maturities, including a 30-year bond, the first euro-denominated bond issued by a corporate since May. The firm tightened pricing on all tranches, paying as little as seven basis points of new issue concession on the shortest maturity.