By Aleesia Forni
Virginia Beach, Nov. 12 – Gilead Sciences Inc. sold $4 billion of senior notes (A3/A-/) in three tranches on Wednesday, according to a market source and a company news release.
Gilead sold a $500 million issue of 2.35% notes due Feb. 1, 2020 at Treasuries plus 75 basis points. The notes priced at 99.772 to yield 2.396%.
A second tranche was $1.75 billion of 3.5% notes due Feb. 1, 2025 sold with a spread of Treasuries plus 115 bps. Pricing was at 99.906 to yield 3.51%.
There was also $1.75 billion of 4.5% notes due Feb. 1, 2045 priced a 99.413 to yield 4.535%, or Treasuries plus 145 bps.
All three tranches priced tighter than price talk.
BofA Merrill Lynch, J.P. Morgan Securities LLC, Barclays and HSBC Securities (USA) Inc. were the joint bookrunners.
Proceeds will be used for general corporate purposes.
The biopharmaceutical company is based in Foster City, Calif.
| Issuer: | Gilead Sciences Inc.
|
| Issue: | Senior notes
|
| Amount: | $4 billion
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, Barclays, HSBC Securities (USA) Inc.
|
| Trade date: | Nov. 12
|
| Settlement date: | Nov. 17
|
| Ratings: | Moody’s: A3
|
| Standard & Poor’s: A-
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Feb. 1, 2020
|
| Coupon: | 2.35%
|
| Price: | 99.772
|
| Yield: | 2.396%
|
| Spread: | Treasuries plus 75 bps
|
| Price guidance: | 90 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | Feb. 1, 2025
|
| Coupon: | 3.5%
|
| Price: | 99.906
|
| Yield: | 3.51%
|
| Spread: | Treasuries plus 115 bps
|
| Price guidance: | 130 bps area
|
|
|
| 30-year bonds
|
| Amount: | $1.75 billion
|
| Maturity: | Feb. 1, 2045
|
| Coupon: | 4.5%
|
| Price: | 99.413
|
| Yield: | 4.535%
|
| Spread: | Treasuries plus 145 bps
|
| Price guidance: | 160 bps area
|
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