By Andrea Heisinger
Omaha, May 6 - GlaxoSmithKline Capital Inc. priced an upsized $9 billion of notes in four tranches Tuesday, an informed source said.
The size was increased from $6 billion in three tranches.
The $1 billion of two-year floating-rate notes priced at par to yield three-month Libor plus 62.5 basis points. This was on the tight end of price talk of Libor plus 65 bps.
The $2.5 billion of 4.85% five-year notes priced at 99.789 to yield 4.898%, or Treasuries plus 173 bps.
The $2.75 billion of 5.65% 10-year notes priced at 99.939 to yield 5.658%, or Treasuries plus 173 bps.
The $2.75 billion of 6.375% 30-year notes priced at 99.694 to yield 6.398%, or Treasuries plus 173 bps.
All of the fixed-rate tranches priced on the tight end of price talk of 175 bps.
They all carry a make-whole redemption option of Treasuries plus 25 bps.
Bookrunners were Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and Lehman Brothers Inc.
Proceeds will be used for general corporate purposes, including financing dividend payments or working capital. They may also be used for repayment of debt from time to time including bonds under the company's European medium-term note program or for short-term debt.
The pharmaceutical and consumer health care company is based in Brentford, U.K.
| Issuer: | GlaxoSmithKline Capital Inc.
|
| Amount: | $9 billion, increased from $6 billion
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities Inc., Lehman Brothers Inc.
|
| Trade date: | May 6
|
| Settlement date: | May 13
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: A+
|
| Fitch: AA-
|
|
|
| Two-year notes
|
| Amount: | $1 billion
|
| Issue: | Floating-rate notes
|
| Maturity: | May 13, 2010
|
| Coupon: | Three-month Libor plus 62.5 bps
|
| Price: | Par
|
| Yield: | Three-month Libor plus 62.5 bps
|
| Price talk: | Libor plus 65
|
|
|
| Five-year notes
|
| Amount: | $2.5 billion
|
| Issue: | Notes
|
| Maturity: | May 15, 2013
|
| Coupon: | 4.85%
|
| Price: | 99.789
|
| Yield: | 4.898%
|
| Spread: | Treasuries plus 173 bps
|
| Price talk: | 175 bps
|
|
|
| 10-year notes
|
| Amount: | $2.75 billion
|
| Issue: | Notes
|
| Maturity: | May 15, 2018
|
| Coupon: | 5.65%
|
| Price: | 99.939
|
| Yield: | 5.658%
|
| Spread: | Treasuries plus 173 bps
|
| Price talk: | 175 bps
|
|
|
| 30-year notes
|
| Amount: | $2.75 billion
|
| Issue: | Notes
|
| Maturity: | May 15, 2038
|
| Coupon: | 6.375%
|
| Price: | 99.694
|
| Yield: | 6.398%
|
| Spread: | Treasuries plus 173 bps
|
| Price talk: | 175 bps
|
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