Abbott Labs spinoff AbbVie pricing benchmark offering of notes in five parts on Monday

By Andrea Heisinger

New York, Nov. 5 - AbbVie, Inc. is set to price a benchmark sale of notes (Baa1/A/) in five tranches on Monday to help fund its split from Abbott Laboratories, a market source said.

The sale is expected to have two tranches of notes with maturities of 2015 with both fixed-rate and floating-rate coupons, as well as maturities of 2017, 2022 and 2042.

Barclays, Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.

The offering is being done under Rule 144A and Regulation S.

Proceeds will be used to provide a net cash distribution to Abbott of about $8.5 billion to complete the separation, as well as a $7.7 billion tender offer related to the spin-off.

Abbott Labs was last in the U.S. bond market with a $3 billion sale of senior notes in three tranches on May 24, 2010. That sale included 2.7% five-year notes priced at 70 basis points over Treasuries, 4.125% 10-year notes sold at 90 bps over Treasuries and 5.3% 30-year bonds priced at Treasuries plus 122 bps.

Pharmaceutical health care products company Abbott Labs, as well as AbbVie, are based in Abbott Park, Ill.

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