By Aleesia Forni
Virginia Beach, Sept. 10 – Gilead Sciences Inc. detailed its $10 billion issue of senior notes (A3/A-) in an FWP filed with the Securities and Exchange Commission.
The offering, which priced during the session on Wednesday, included $1 billion of 1.85% notes due 2018 priced at 99.989 to yield 1.854%, or Treasuries plus 80 basis points.
Price guidance was set in the Treasuries plus 85 bps area following initial talk in the Treasuries plus 105 bps area.
Also, $2 billion of 2.55% notes due 2020 sold at Treasuries plus 105 bps, at the tight end of guidance set in the Treasuries plus 110 bps area. Initially, the notes were talked in the Treasuries plus 125 bps area.
Pricing was at 99.82 to yield 2.589%.
A $1 billion 3.25% note due 2022 priced at 99.859 to yield 3.273%, or Treasuries plus 135 bps.
Guidance was set in the Treasuries plus 140 bps area following talk in the Treasuries plus 155 bps area.
There was also $2.75 billion of 3.65% notes due 2026 sold with a 150 bps spread over Treasuries.
Pricing came at the tight end of guidance set in the Treasuries plus 155 bps area, tightened from the Treasuries plus 170 bps area.
The notes were issued at a price of 99.596 to yield 3.697%.
Also priced was $1 billion of 4.6% notes due 2035 at 99.665 to yield 4.626% with a spread of Treasuries plus 165 bps.
The notes were guided in the Treasuries plus 170 bps area and initially talked in the Treasuries plus 190 bps area.
Finally, $2.25 billion of 4.75% notes due 2046 priced at 99.587 to yield 4.776%, or Treasuries plus 180 bps.
This was the tight end of guidance in the Treasuries plus 185 bps area, which had tightened from the Treasuries plus 205 bps area.
BofA Merrill Lynch and J.P. Morgan Securities LLC were the active joint bookrunners for all tranches.
Passive bookrunners were Morgan Stanley & Co. LLC and Mizuho Securities (USA) Inc. for the tranches due 2018 and 2022, Wells Fargo Securities LLC and HSBC Securities (USA) Inc. for the tranches due 2020 and 2035, and Goldman Sachs and Barclays for the tranches due 2026 and 2046.
Proceeds will be used for general corporate purposes, which may include the repayment of debt, working capital, payment of dividends and the repurchase of its outstanding common stock.
The biopharmaceutical company is based in Foster City, Calif.
| Issuer: | Gilead Sciences Inc.
|
| Issue: | Senior notes
|
| Amount: | $10 billion
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC
|
| Co-managers: | RBC Capital Markets, LLC, MUFG, SMBC Nikko Securities America, Inc., U.S. Bancorp Investments, Inc., The Williams Capital Group LP, Evercore Group L.L.C
|
| Pricing date: | Sept. 9
|
| Settlement date: | Sept. 14
|
| Ratings: | Moody’s: A3
|
| Standard & Poor’s: A-
|
| Distribution: | SEC-registered
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Passive bookrunners: | Morgan Stanley & Co. LLC, Mizuho Securities (USA) Inc.
|
| Maturity: | Sept. 4, 2018
|
| Coupon: | 1.85%
|
| Price: | 99.989
|
| Yield: | 1.854%
|
| Spread: | Treasuries plus 80 bps
|
| Price guidance: | Treasuries plus 85 bps, tightened from 105 bps
|
| Make-whole call: | Treasuries plus 12.5 bps
|
|
|
| Five-year notes
|
| Amount: | $2 billion
|
| Passive bookrunners: | Wells Fargo Securities LLC, HSBC Securities (USA) Inc.
|
| Maturity: | Sept. 1, 2020
|
| Coupon: | 2.55%
|
| Price: | 99.82
|
| Yield: | 2.589%
|
| Spread: | Treasuries plus 105 bps
|
| Price guidance: | Treasuries plus 110 bps, tightened from 125 bps
|
| Make-whole call: | Treasuries plus 15 bps
|
|
|
| Seven-year notes
|
| Amount: | $1 billion
|
| Passive bookrunners: | Morgan Stanley & Co. LLC, Mizho Securities (USA) Inc.
|
| Maturity: | Sept. 1, 2022
|
| Coupon: | 3.25%
|
| Price: | 99.859
|
| Yield: | 3.273%
|
| Spread: | Treasuries plus 135 bps
|
| Price guidance: | Treasuries plus 140 bps, tightened from 155 bps
|
| Make-whole call: | Treasuries plus 20 bps prior to July 1, 2022, then callable at par
|
|
|
| Notes due 2026
|
| Amount: | $2.75 billion
|
| Passive bookrunners: | Goldman Sachs & Co., Barclays
|
| Maturity: | March 1, 2026
|
| Coupon: | 3.65%
|
| Price: | 99.596
|
| Yield: | 3.697%
|
| Spread: | Treasuries plus 150 bps
|
| Price guidance: | Treasuries plus 155 bps, tightened from 170 bps
|
| Make-whole call: | Treasuries plus 25 bps prior to Dec. 1, 2025, then callable at par
|
|
|
| 20-year notes
|
| Amount: | $1 billion
|
| Passive bookrunners: | Wells Fargo Securities LLC, HSBC Securities (USA) Inc.
|
| Maturity: | Sept. 1, 2035
|
| Coupon: | 4.6%
|
| Price: | 99.665
|
| Yield: | 4.626%
|
| Spread: | Treasuries plus 165 bps
|
| Price guidance: | Treasuries plus 170 bps, tightened from 190 bps
|
| Make-whole call: | Treasuries plus 25 bps prior to March 1, 2035, then callable at par
|
|
|
| Notes due 2046
|
| Amount: | $2.25 billion
|
| Passive bookrunners: | Goldman Sachs & Co., Barclays
|
| Maturity: | March 1, 2046
|
| Coupon: | 4.75%
|
| Price: | 99.587
|
| Yield: | 4.776%
|
| Spread: | Treasuries plus 180 bps
|
| Price guidance: | Treasuries plus 185 bps, tightened from 205 bps
|
| Make-whole call: | Treasuries plus 30 bps prior to Sept. 1, 2045, then callable at par
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
