By Cristal Cody
Tupelo, Miss., Sept. 23 – Gilead Sciences Inc. sold $6.75 billion of senior notes (A3/A) in six tranches on Wednesday, according to a market source.
The company priced $500 million of three-year floating-rate notes at Libor plus 52 basis points.
A $2 billion tranche of 0.75% three-year fixed-rate notes priced at a spread of Treasuries plus 60 bps.
Initial guidance was in the Treasuries plus 80 bps area.
Gilead Sciences priced $750 million of 1.2% seven-year notes at a 75 bps over Treasuries spread.
Price talk was at the 110 bps area.
A $1 billion offering of 1.65% 10-year notes was sold at a spread of 100 bps over Treasuries, compared to talk in the 125 bps area.
The company placed $1 billion of 2.6% 20-year notes at a Treasuries plus 120 bps spread.
Initial guidance was at the 150 bps spread area.
In the final tranche, $1.5 billion of 2.8% 30-year notes priced at a spread of 140 bps over Treasuries.
The notes were talked to print in the 165 bps over Treasuries area.
Barclays and Wells Fargo Securities, LLC were the bookrunners.
Gilead plans to use proceeds from the floating-rate notes and three of the fixed-rate notes, along with proceeds from a new term loan and cash on its balance sheet, to finance its proposed acquisition of Immunomedics, Inc.
Proceeds from the remaining tranche of fixed-rate notes will be used to redeem Gilead’s 4.5% senior notes due 2021 and 4.4% notes due 2021.
The biopharmaceutical company is based in Foster City, Calif.
| Issuer: | Gilead Sciences Inc.
|
| Amount: | $6.75 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays and Wells Fargo Securities, LLC
|
| Trade date: | Sept. 23
|
| Ratings: | Moody’s: A3
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
|
| Amount: | $500 million
|
| Maturity: | Sept. 29, 2023
|
| Coupon: | Libor plus 52 bps
|
| Price guidance: | Libor plus benchmark
|
|
|
| Three-year notes
|
| Amount: | $2 billion
|
| Maturity: | Sept. 29, 2023
|
| Coupon: | 0.75%
|
| Spread: | Treasuries plus 60 bps
|
| Price guidance: | Treasuries plus 80 bps area
|
|
|
| Seven-year notes
|
| Amount: | $750 million
|
| Maturity: | Oct. 1, 2027
|
| Coupon: | 1.2%
|
| Spread: | Treasuries plus 75 bps
|
| Price guidance: | Treasuries plus 110 bps area
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | Oct. 1, 2030
|
| Coupon: | 1.65%
|
| Spread: | Treasuries plus 100 bps
|
| Price guidance: | Treasuries plus 125 bps area
|
|
|
| 20-year notes
|
| Amount: | $1 billion
|
| Maturity: | Oct. 1, 2040
|
| Coupon: | 2.6%
|
| Spread: | Treasuries plus 120 bps
|
| Price guidance: | Treasuries plus 150 bps area
|
|
|
| 30-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Oct. 1, 2050
|
| Coupon: | 2.8%
|
| Spread: | Treasuries plus 140 bps
|
| Price guidance: | Treasuries plus 165 bps area
|
|
|
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