Published on 9/14/2017 in the Prospect News Investment Grade Daily.
New Issue: Gilead Sciences prices $3 billion of senior notes in four tranches
By Cristal Cody
Tupelo, Miss., Sept. 14 – Gilead Sciences Inc. sold $3 billion of senior notes (A3/A) in four tranches on Thursday, according to FWP filings with the Securities and Exchange Commission.
In the fixed-rate tranche, the company sold $1 billion of 1.85% two-year notes at 99.965 to yield 1.868% and a spread of Treasuries plus 50 basis points.
Gilead Sciences also priced $750 million of one-year floating-rate notes at par to yield Libor plus 17 bps.
The company placed $750 million of floating-rate notes due March 20, 2019 at par to yield Libor plus 22 bps.
Gilead Sciences also sold $500 million of two-year floaters at par to yield Libor plus 25 bps.
BofA Merrill Lynch, Wells Fargo Securities LLC, Barclays, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds will be used as part of the financing for the company’s planned acquisition of Kite Pharma, Inc.
The biopharmaceutical company is based in Foster City, Calif.
| Issuer: | Gilead Sciences Inc.
|
| Amount: | $3 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Wells Fargo Securities LLC, Barclays, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Co-managers: | Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Mizuho Securities USA LLC, MUFG, RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., U.S. Bancorp Investments, Inc., Evercore Group LLC, Lazard Frères & Co. LLC and Williams Capital Group, LP
|
| Trade date: | Sept. 14
|
| Settlement date: | Sept. 21
|
| Ratings: | Moody’s: A3
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| Two-year notes
|
| Amount: | $1 billion
|
| Maturity: | Sept. 20, 2019
|
| Coupon: | 1.85%
|
| Price: | 99.965
|
| Yield: | 1.868%
|
| Spread: | Treasuries plus 50 bps
|
| Call features: | Make-whole call at Treasuries plus 10 bps; special call at 101% if acquisition of Kite Pharma, Inc. is not completed on or before March 27, 2018
|
|
|
| One-year floaters
|
| Amount: | $750 million
|
| Maturity: | Sept. 20, 2018
|
| Coupon: | Libor plus 17 bps
|
| Price: | Par
|
| Yield: | Libor plus 17 bps
|
| Call feature: | Special call at 101% if acquisition of Kite Pharma, Inc. is not completed on or before March 27, 2018
|
|
|
| 18-month floaters
|
| Amount: | $750 million
|
| Maturity: | March 20, 2019
|
| Coupon: | Libor plus 22 bps
|
| Price: | Par
|
| Yield: | Libor plus 22 bps
|
| Call feature: | Special call at 101% if acquisition of Kite Pharma, Inc. is not completed on or before March 27, 2018
|
|
|
| Two-year floaters
|
| Amount: | $500 million
|
| Maturity: | Sept. 20, 2019
|
| Coupon: | Libor plus 25 bps
|
| Price: | Par
|
| Yield: | Libor plus 25 bps
|
| Call feature: | Special call at 101% if acquisition of Kite Pharma, Inc. is not completed on or before March 27, 2018
|
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