By Cristal Cody
Eureka Springs, Ark., Sept. 15 – Gilead Sciences Inc. priced $5 billion of senior notes (A3/A) in five tranches on Thursday, according to a market source.
The company sold $500 million of 1.95% notes due March 1, 2022 at 80 basis points over Treasuries.
Gilead Sciences priced $750 million of 2.5% seven-year notes at a spread of 105 bps over Treasuries.
The company sold $1.25 billion of 2.95% notes due March 1, 2027 at 125 bps over Treasuries.
A $750 million tranche of 4% 20-year notes priced at 157 bps over Treasuries.
Gilead Sciences also priced $1.75 billion of 4.15% 30-year notes at Treasuries plus 172 bps.
The notes priced on the tight side of guidance.
BofA Merrill Lynch and J.P. Morgan Securities LLC were the bookrunners.
The notes will have make-whole calls and par calls, according to a 424B5 filing with the Securities and Exchange Commission.
Proceeds will be used for general corporate purposes.
The biopharmaceutical company is based in Foster City, Calif.
| Issuer: | Gilead Sciences Inc.
|
| Amount: | $5 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC
|
| Trade date: | Sept. 15
|
| Ratings: | Moody’s: A3
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | March 1, 2022
|
| Coupon: | 1.95%
|
| Spread: | Treasuries plus 80 bps
|
| Price guidance: | Treasuries plus 80 bps to 85 bps
|
|
|
| Seven-year notes
|
| Amount: | $750 million
|
| Maturity: | Sept. 1, 2023
|
| Coupon: | 2.5%
|
| Spread: | Treasuries plus 105 bps
|
| Price guidance: | Treasuries plus 105 bps to 110 bps
|
|
|
| 10-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | March 1, 2027
|
| Coupon: | 2.95%
|
| Spread: | Treasuries plus 125 bps
|
| Price guidance: | Treasuries plus 125 bps to 130 bps
|
|
|
| 20-year notes
|
| Amount: | $750 million
|
| Maturity: | Sept. 1, 2036
|
| Coupon: | 4%
|
| Spread: | Treasuries plus 157 bps
|
| Price guidance: | Treasuries plus 160 bps area, plus or minus 3 bps
|
|
|
| 30-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | March 1, 2047
|
| Coupon: | 4.15%
|
| Spread: | Treasuries plus 172 bps
|
| Price guidance: | Treasuries plus 175 bps area, plus or minus 3 bps
|
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