By Andrea Heisinger
New York, Dec. 6 - Gilead Sciences, Inc. priced $3.7 billion of senior notes (Baa1/A-/) in four tranches late on Tuesday, a source close to the deal said.
A $750 million tranche of 2.4% three-year notes sold at a spread of Treasuries plus 205 basis points.
A $700 million tranche of 3.05% five-year notes priced at Treasuries plus 215 bps.
A $1.25 billion tranche of 4.4% 10-year notes sold at a spread of 235 bps over Treasuries.
The final part was $1 billion of 5.65% 30-year bonds priced at Treasuries plus 260 bps.
The deal feature a change-of-control put at 101%. There is a mandatory call at 101% if the tender offer is not done on or before June 30, 2012 or the merger with Pharmasset, Inc. is terminated before that date.
Bank of America Merrill Lynch and Barclays Capital Inc. were the bookrunners for all of the tranches.
Proceeds will be used to pay a portion of the cash consideration for a tender offer and $11.1 billion merger with Pharmasset, along with related fees and expenses.
Gilead last priced debt in a $1 billion sale of 4.5% 10-year notes at 125 bps over Treasuries on March 23, 2011.
The biopharmaceutical company is based in Foster City, Calif.
| Issuer: | Gilead Sciences, Inc.
|
| Issue: | Senior notes
|
| Amount: | $3.7 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Barclays Capital Inc.
|
| Change-of-control put: | 101%
|
| Mandatory redemption: | If tender offer not done or merger terminated before June 30, 2012, at 101%
|
| Trade date: | Dec. 6
|
| Settlement date: | Dec. 13
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A-
|
|
|
| Three-year notes
|
| Amount: | $750 million
|
| Maturity: | 2014
|
| Coupon: | 2.4%
|
| Spread: | Treasuries plus 205 bps
|
|
|
| Five-year notes
|
| Amount: | $700 million
|
| Maturity: | 2016
|
| Coupon: | 3.05%
|
| Spread: | Treasuries plus 215 bps
|
|
|
| 10-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | 2021
|
| Coupon: | 4.4%
|
| Spread: | Treasuries plus 235 bps
|
|
|
| 30-year bonds
|
| Amount: | $1 billion
|
| Maturity: | 2041
|
| Coupon: | 5.65%
|
| Spread: | Treasuries plus 260 bps
|
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