Published on 6/22/2020 in the Prospect News Investment Grade Daily.
New Issue: Abbott Labs prices $1.3 billion of fixed-rate notes in two parts
By Cristal Cody
Tupelo, Miss., June 22 – Abbott Laboratories priced $1.3 billion of senior notes (A3/A-) in two tranches on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $650 million of 1.15% notes due Jan. 30, 2028 at 99.37 to yield 1.237%, or a spread of 70 basis points over Treasuries.
Initial price talk was in the 100 bps spread area.
Abbott sold $650 million of 1.4% 10-year notes at 98.567 to yield 1.555%, or an 85 bps over Treasuries spread.
The notes were talked to price in the 115 bps spread area.
Morgan Stanley & Co. LLC, Barclays, BofA Securities Inc. and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes, including debt repayment.
Abbott is an Abbott Park, Ill., pharmaceutical health care products company.
| Issuer: | Abbott Laboratories
|
| Amount: | $1.3 billion
|
| Description: | Senior notes
|
| Bookrunners: | Morgan Stanley & Co. LLC, Barclays, BofA Securities Inc. and J.P. Morgan Securities LLC
|
| Senior co-managers: | BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., MUFG and SG Americas Securities, LLC
|
| Co-managers: | HSBC Securities (USA) Inc., Santander Investment Securities Inc., Standard Chartered Bank, Goldman Sachs & Co. LLC, Banca IMI SpA, BBVA Securities Inc., ING Financial Markets LLC, Mizuho Securities USA LLC, RBC Capital Markets, LLC, U.S. Bancorp Investments, Inc. and Siebert Williams Shank & Co., LLC
|
| Trade date: | June 22
|
| Settlement date: | June 24
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Distribution: | SEC registered
|
|
|
| Notes due 2028
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| Amount: | $650 million
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| Maturity: | Jan. 30, 2028
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| Coupon: | 1.15%
|
| Price: | 99.37
|
| Yield: | 1.237%
|
| Spread: | Treasuries plus 70 bps
|
| Call features: | Make-whole call before Nov. 30, 2027 at greater of par or Treasuries plus 12.5 bps; thereafter at par
|
| Price guidance: | Treasuries plus 100 bps area
|
|
|
| Notes due 2030
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| Amount: | $650 million
|
| Maturity: | June 30, 2030
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| Coupon: | 1.4%
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| Price: | 98.567
|
| Yield: | 1.555%
|
| Spread: | Treasuries plus 85 bps
|
| Call features: | Make-whole call before March 30, 2030 at greater of par or Treasuries plus 15 bps; thereafter at par
|
| Price guidance: | Treasuries plus 115 bps area
|
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