By Cristal Cody
Eureka Springs, Ark., Nov. 17 – Abbott Laboratories priced $15.1 billion of fixed-rate senior notes (Baa3/A+) in six parts on Thursday, according to a market source.
The company sold $2.85 billion of 2.35% three-year notes at a spread of 105 basis points over Treasuries.
A $2.85 billion tranche of 2.9% five-year notes priced with a 120 bps over Treasuries spread.
Abbott sold $1.5 billion of 3.4% seven-year notes at 140 bps over Treasuries.
In the 10-year tranche, the company priced $3 billion of 3.75% notes at a spread of 155 bps over Treasuries.
Abbott brought $1.65 billion of 4.75% 20-year notes with a spread of 175 bps over Treasuries.
In the final tranche, the company sold $3.25 billion of 4.9% 30-year notes at a spread of Treasuries plus 190 bps.
All of the tranches priced on the tight side of guidance.
BofA Merrill Lynch, Barclays and Morgan Stanley & Co. LLC were the bookrunners.
The notes have make-whole calls and par calls, according to a 424B5 filing with the Securities and Exchange Commission.
Other details of the issuance were not immediately available by Prospect News’ deadline.
Proceeds will be used to help fund the cash portion of the Abbott Park, Ill., pharmaceutical health care products company’s planned $25 billion acquisition of St. Jude Medical, Inc. and for general corporate purposes.
| Issuer: | Abbott Laboratories
|
| Amount: | $15.1 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Barclays, Morgan Stanley & Co. LLC
|
| Trade date: | Nov. 17
|
| Ratings: | Moody’s: Baa3
|
| S&P: A+
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $2.85 billion
|
| Maturity: | Nov. 22, 2019
|
| Coupon: | 2.35%
|
| Spread: | Treasuries plus 105 bps
|
| Price guidance: | Treasuries plus 110 bps area, plus or minus 5 bps
|
|
|
| Five-year notes
|
| Amount: | $2.85 billion
|
| Maturity: | Nov. 30, 2021
|
| Coupon: | 2.9%
|
| Spread: | Treasuries plus 120 bps
|
| Price guidance: | Treasuries plus 125 bps area, plus or minus 5 bps
|
|
|
| Seven-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Nov. 30, 2023
|
| Coupon: | 3.4%
|
| Spread: | Treasuries plus 140 bps
|
| Price guidance: | Treasuries plus 145 bps area, plus or minus 5 bps
|
|
|
| 10-year notes
|
| Amount: | $3 billion
|
| Maturity: | Nov. 30, 2026
|
| Coupon: | 3.75%
|
| Spread: | Treasuries plus 155 bps
|
| Price guidance: | Treasuries plus 160 bps area, plus or minus 5 bps
|
|
|
| 20-year notes
|
| Amount: | $1.65 billion
|
| Maturity: | Nov. 30, 2036
|
| Coupon: | 4.75%
|
| Spread: | Treasuries plus 175 bps
|
| Price guidance: | Treasuries plus 180 bps area, plus or minus 5 bps
|
|
|
| 30-year notes
|
| Amount: | $3.25 billion
|
| Maturity: | Nov. 30, 2046
|
| Coupon: | 4.9%
|
| Spread: | Treasuries plus 190 bps
|
| Price guidance: | Treasuries plus 195 bps area, plus or minus 5 bps
|
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