S&P rates Nutrition & Biosciences notes BBB

S&P said it assigned its BBB rating to Nutrition & Biosciences Inc.’s senior unsecured notes, which will be guaranteed by International Flavors & Fragrances Inc.

N&B, which will separate from current owner DuPont de Nemours Inc., will become a wholly owned subsidiary of IFF after the merger closes, which has been approved by IFF shareholders.

It will issue the notes in several tranches with different maturities.

The company will place the proceeds in a segregated escrow account for the benefit of the noteholders if the merger does not occur by Sept. 15, 2021, which would require the issuer to redeem the notes at a redemption price equal to 101% of the aggregate principal amount of the notes.

“We expect the company to use the net proceeds from these notes together with additional term loan proceeds from a separate financing to make a special one-time payment to DuPont at the closing date of the merger,” S&P said in a press release.

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