By Jennifer Chiou
New York, Oct. 26 - Abbott Laboratories announced the start of cash tender offers for nine series of its notes.
The company said that it intends to fund a portion of the tender consideration with some of the dividend it expects to receive from wholly owned subsidiary AbbVie Inc. In turn, AbbVie expects to launch an offering of debt securities to finance the dividend.
The affected securities are listed in the table below.
The any and all offers will end at 5 p.m. ET on Nov. 8, while the partial tender offers are set to end at 11:59 p.m. ET on Nov. 26.
Those participating in the partial offer must tender by the close on Nov. 8 in order to receive the total partial offer tender consideration, which includes a $30.00 per $1,000 of notes early tender payment.
The company will also pay accrued interest to the settlement date.
There is no minimum tender condition, but the offers are conditioned on financing from the planned issue of AbbVie notes.
Abbott said it will call for redemption all of the notes in the any and all offer that remain outstanding following completion of the tender.
The lead dealer managers are Morgan Stanley & Co. LLC (800 624-1808 or call collect 212 761-1057), Barclays Capital Inc. (800 438-3242 or call collect 212 528-7581), BofA Merrill Lynch (888 292-0070 or call collect 980 683-3215) and J.P. Morgan Securities LLC (866 834-4666 or call collect 212 834-2494).
Georgeson Inc. is the information agent (212 440-9800 for banks and brokers or 800 509-0984).
The pharmaceutical health care products company is based in Abbott Park, Ill.
Any and all offers
| Notes | Outstanding | Tender Cap | Reference Treasury | Fixed Spread
|
| 4.35% notes due 2014 | $500 million | N/A | 1.25% due 3/15/14 | 10 bps
|
| 2.7% notes due 2015 | $750 million | N/A | 0.25% due 5/15/15 | 10 bps
|
| 5.875% notes due 2016 | $2 billion | N/A | 5.125% due 5/15/16 | 15 bps
|
| 5.6% notes due 2017 | $1.5 billion | N/A | 2.25% due 11/30/17 | 25 bps
|
|
|
| Partial offers
|
| Notes | Outstanding | Tender Cap | Reference Treasury | Fixed Spread
|
| 5.125% notes due 2019 | $2 billion | $944 million | 1.5% due 3/31/19 | 25 bps
|
| 4.125% notes due 2020 | $1 billion | $472 million | 3.5% due 5/15/20 | 15 bps
|
| 6.15% notes due 2037 | $1 billion | $472 million | 3.0% due 5/15/42 | 49 bps
|
| 6% notes due 2039 | $1 billion | $472 million | 3.0% due 5/15/42 | 43 bps
|
| 5.3% notes due 2040 | $1.25 billion | $590 million | 3.0% due 5/15/42 | 45 bps
|
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