By Andrea Heisinger
New York, March 13 - GlaxoSmithKline Capital Inc. priced $3 billion of senior notes (A1/A+/) in three maturities on Wednesday, a market source said.
A $1.25 billion tranche of 0.7% three-year notes priced at 99.87 to yield 0.744% with a spread of Treasuries plus 35 basis points. Guidance was in the 40 bps area.
There is a make-whole call at Treasuries plus 5 bps.
There was $1.25 billion of 2.8% 10-year notes sold at 98.992 to yield 2.917% with a spread of 90 bps over Treasuries. Price talk was in the 95 bps area.
The tranche carries a make-whole call at Treasuries plus 15 bps.
Finally, there was $500 million of 4.2% 30-year bonds priced at 98.672 to yield 4.279% with a spread of Treasuries plus 105 bps. The bonds were talked in the 110 bps area.
There is a make-whole call at Treasuries plus 17.5 bps on the bonds.
Bookrunners were Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and UBS Securities LLC.
Proceeds will be used for general corporate purposes, including refinancing existing debt.
The notes are guaranteed by Brentford, England-based GlaxoSmithKline plc.
Glaxo last tapped the U.S. bond market with a $5 billion offering in three parts on May 2, 2012. That trade included a 0.75% three-year note sold at Treasuries plus 45 bps and a 2.85% 10-year note priced at 100 bps over Treasuries.
The global health care company for pharmaceuticals and consumer health products has its U.S. headquarters in Wilmington, Del.
| Issuer: | GlaxoSmithKline Capital Inc.
|
| Guarantor: | GlaxoSmithKline plc
|
| Issue: | Senior notes
|
| Amount: | $3 billion
|
| Bookrunners: | Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, UBS Securities LLC
|
| Trade date: | March 13
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: A+
|
|
|
| Three-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | March 18, 2016
|
| Coupon: | 0.7%
|
| Price: | 99.87
|
| Yield: | 0.744%
|
| Spread: | Treasuries plus 35 bps
|
| Call: | Make-whole at Treasuries plus 5 bps
|
| Price talk: | 40 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | March 18, 2023
|
| Coupon: | 2.8%
|
| Price: | 98.992
|
| Yield: | 2.917%
|
| Spread: | Treasuries plus 90 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | 95 bps area
|
|
|
| 30-year bonds
|
| Amount: | $500 million
|
| Maturity: | March 18, 2043
|
| Coupon: | 4.2%
|
| Price: | 98.672
|
| Yield: | 4.279%
|
| Spread: | Treasuries plus 105 bps
|
| Call: | Make-whole at Treasuries plus 17.5 bps
|
| Price talk: | 110 bps area
|
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