J&J to Borrow at Record-Low Rates
Author: Katy Burne</br></br>NEW YORK--Johnson & Johnson is set to price its $1.1 billion, two-part bond offering at the lowest rates ever for 10-year and 30-year bonds, in a sign that investors are continuing to bet on corporate debt at a time of record-low interest rates on government bonds.</br></br>Corporations with the best credit ratings have been able to take advantage of this demand and raise cash very cheaply. Some of the best-known issuers that have tapped the debt markets at near record-low rates in recent weeks include International Business Machines Corp. and Wal-Mart Stores Inc.</br></br>The tranches on the deal are split equally, with $550 million in each maturity bucket, and the issuer is on track to borrow at interest rates around 3.10% for the 10-year maturity and 4.5% for the 30-year paper if market conditions hold, according to one person familiar with the sale.</br></br>The lowest rates on record for these maturities to date were scored in recent weeks by McDonald's Corp. and Northern States Power Co. of Minnesota, a subsidiary of Xcel Energy Inc.