Reckitt (RKTLN; A3 Pos/ A-) Asset sales

• It will exit some home care brands including Air Wick, Mortein, Calgon and Cillit Bang - together totalling FY23 net revenue of £1.9b (group £14.6b so 13%). It plans to do this by end of 2025.
• The Mead Johnson Nutrition business (acquired in 2017) that contain Enfamil and Nutramigen it says is now "non-core" and will consider "strategic options to maximise shareholder value". Nutrition was £2.4b in FY23 or 16.5% of group sales.
• Reminder Enfamil alongside main competitor Similac (Abbott Laboratories; ABT Aa3/AA-) are facing bulk lawsuits in the US on their formulas potentially causing NEC in pre-mature babies.
• Bond docs have a "significant subsidiary" as exceeding 10% of net sales BUT we don't see protections covering sale of business/assets in docs (even though most are marked in Bloomberg as having sale of asset restrictions) or EoD clauses.
• The legacy $25/39/44 issued under Mead Johnson are the closest to any protection we could find. Even there seems to only indicate debt needs to follow assets;

"The Indenture provides that we may consolidate or merge with or into any other corporation and we may sell, lease or convey all or substantially all of our assets to any corporation organized and existing under the laws of the United States of America or any U.S. state, provided that the corporation (if other than us) formed by or resulting from any such consolidation or merger or which shall have received such assets shall assume payment of the principal of (and premium, if any), any interest on and any additional amounts payable with respect to the debt securities and the performance and observance of all of the covenants and conditions of the Indenture to be performed or observed by us." ($ legacy lines, merger and sale of assets)