By Devika Patel
Knoxville, Tenn., May 11 – GlaxoSmithKline plc priced $6 billion of notes (A2/A+) in five tranches on Thursday, according to FWPs filed with the Securities and Exchange Commission.
The notes were sold via GlaxoSmithKline Capital plc and are guaranteed by GlaxoSmithKline.
The company initially planned to price four fixed-rate tranches and two floating-rate tranches.
GlaxoSmithKline sold $1.25 billion of 3.125% three-year notes at a spread of Treasuries plus 55 basis points. These notes priced at 99.731 to yield 3.22%.
The company priced $750 million of three-year floating-rate notes at par to yield Libor plus 35 bps.
A $1.25 billion tranche of 3.375% five-year notes priced at a spread of 65 bps over Treasuries. These notes priced at 99.531 to yield 3.478%.
GlaxoSmithKline brought $1 billion of 3.625% seven-year notes at Treasuries plus 80 bps. These notes priced at 99.328 to yield 3.735%.
There were $1.75 billion of 3.875% 10-year notes at a spread of Treasuries plus 90 bps. These notes priced at 99.992 to yield 3.876%.
BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC were the lead bookrunners. Other bookrunners were Barclays, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC and Standard Chartered Bank.
Proceeds from the deal will be used for general corporate purposes.
The global health care company for pharmaceuticals and consumer health products has its headquarters in Brentford, England.
| Issuer: | GlaxoSmithKline Capital plc
|
| Guarantor: | GlaxoSmithKline plc
|
| Amount: | $6 billion
|
| Description: | Notes
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC (leads); Barclays, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC and Standard Chartered Bank
|
| Trade date: | May 10
|
| Settlement date: | May 15
|
| Ratings: | Moody’s: A2
|
| S&P: A+
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | May 14, 2021
|
| Coupon: | 3.125%
|
| Price: | 99.731
|
| Yield: | 3.22%
|
| Spread: | Treasuries plus 55 bps
|
| Call feature: | Make-whole call at Treasuries plus 10 bps at any time
|
|
|
| Three-year floaters
|
| Amount: | $750 million
|
| Maturity: | May 14, 2021
|
| Coupon: | Libor plus 35 bps
|
| Price: | Par
|
| Yield: | Libor plus 35 bps
|
| Call feature: | Non-callable
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | May 15, 2023
|
| Coupon: | 3.375%
|
| Price: | 99.531
|
| Yield: | 3.478%
|
| Spread: | Treasuries plus 65 bps
|
| Call feature: | Make-whole call at Treasuries plus 10 bps at any time
|
|
|
| Seven-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 15, 2025
|
| Coupon: | 3.625%
|
| Price: | 99.328
|
| Yield: | 3.735%
|
| Spread: | Treasuries plus 80 bps
|
| Call feature: | Make-whole call at Treasuries plus 15 bps at any time
|
|
|
| 10-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | May 15, 2028
|
| Coupon: | 3.875%
|
| Price: | 99.992
|
| Yield: | 3.876%
|
| Spread: | Treasuries plus 90 bps
|
| Call feature: | Make-whole call at Treasuries plus 15 bps at any time
|
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