By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, March 21 – A total of $8.75 billion of notes (Baa1/BBB) were priced in seven tranches on Monday to finance the spinoff of Haleon from GlaxoSmithKline plc, according to a market source.
GSK Consumer Healthcare Capital US LLC will be listed as issuer on the notes that will be guaranteed by GlaxoSmithKline plc.
The issuer priced $300 million of floating-rate notes due March 24, 2024 at SOFR plus 89 basis points.
A $700 million tranche of 3.024% notes due March 24, 2024 priced at a spread over Treasuries of 90 bps, versus talk in the Treasuries plus 110 bps area.
The issuer priced $1.75 billion of 3.125% notes due March 24, 2025 at Treasuries plus 90 bps, compared to Treasuries plus 110 bps area talk.
A $2 billion tranche of 3.375% notes due March 24, 2027 priced at Treasuries plus 110 bps, compared to talk of Treasuries plus 130 bps area.
GSK priced $1 billion of 3.375% notes due March 24, 2029 at Treasuries plus 115 bps, versus Treasuries plus 140 bps area talk.
A $2 billion tranche of 3.625% notes due March 24, 2032 priced at Treasuries plus 135 bps, compared to talk of Treasuries plus 160 bps area.
Finally, a $1 billion tranche of 4% notes due March 24, 2052 at Treasuries plus 158 bps after being talked in the Treasuries plus 190 bps area.
BofA Securities, Goldman Sachs, Citigroup, HSBC and Mizuho arranged the sale.
The offering was expected to be £10.5 billion sterling, or $13.8 billion equivalent, and was expected to include dollar, euro and sterling tranches. Details on any non-dollar issues were not available at press time.
The demerger is expected to be completed in July.
GlaxoSmithKline is a Brentford, U.K.-based pharmaceutical company.
| Issuer: | GSK Consumer Healthcare Capital US LLC
|
| Guarantor: | GlaxoSmithKline plc
|
| Issue: | Senior notes
|
| Amount: | $8.75 billion
|
| Bookrunners: | BofA Securities, Goldman Sachs, Citigroup, HSBC and Mizuho
|
| Pricing date: | March 21
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB
|
|
|
| Two-year floaters
|
| Amount: | $300 million
|
| Maturity: | March 24, 2024
|
| Coupon: | SOFR plus 89 bps
|
|
|
| Two-year fixed-rate notes
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| Amount: | $700 million
|
| Maturity: | March 24, 2024
|
| Coupon: | 3.024%
|
| Spread: | Treasuries plus 90 bps
|
| Talk: | Treasuries plus 110 bps area
|
|
|
| Three-year notes
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| Amount: | $1.75 billion
|
| Maturity: | March 24, 2025
|
| Coupon: | 3.125%
|
| Spread: | Treasuries plus 90 bps
|
| Talk: | Treasuries plus 110 bps area
|
|
|
| Five-year notes
|
| Amount: | $2 billion
|
| Maturity: | March 24, 2027
|
| Coupon: | 3.375%
|
| Spread: | Treasuries plus 110 bps
|
| Talk: | Treasuries plus 130 bps area
|
|
|
| Seven-year notes
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| Amount: | $1 billion
|
| Maturity: | March 24, 2029
|
| Coupon: | 3.375%
|
| Spread: | Treasuries plus 115 bps
|
| Talk: | Treasuries plus 140 bps area
|
|
|
| 10-year notes
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| Amount: | $2 billion
|
| Maturity: | March 24, 2032
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| Coupon: | 3.625%
|
| Spread: | Treasuries plus 135 bps
|
| Talk: | Treasuries plus 160 bps area
|
|
|
| 30-year notes
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| Amount: | $1 billion
|
| Maturity: | March 24, 2052
|
| Coupon: | 4%
|
| Spread: | Treasuries plus 158 bps
|
| Talk: | Treasuries plus 190 bps area
|
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