By Andrea Heisinger
New York, Nov. 5 - AbbVie, Inc. priced $14.7 billion of notes (Baa1/A/) in six tranches on Monday to help fund its split from Abbott Laboratories, a market source said.
The size was increased from $10 billion in five tranches, the source said. Full terms were not available at press time.
Among the tranches, $500 million of three-year floating-rate notes sold at par to yield Libor plus 76 basis points.
A $3.5 billion tranche of three-year notes priced at a spread of Treasuries plus 85 bps. This was tighter than talk in the 90 bps area.
The $4 billion of five-year notes sold at 115 bps over Treasuries. The spread was wider than guidance in the 110 bps area.
The sale also included $1 billion of six-year notes priced at a spread of Treasuries plus 140 bps. The pricing level was in line with talk.
The $3.1 billion of 10-year paper sold at a spread of 130 bps over Treasuries. These notes were also sold in line with guidance.
Finally, there was $2.6 billion of 30-year bonds priced at Treasuries plus 160 bps. The bonds priced in line with talk.
Barclays, Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.
The offering was 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 bps 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.
| Issuer: | AbbVie, Inc.
|
| Issue: | Senior notes
|
| Amount: | $14.7 billion, increased from $10 billion
|
| Bookrunners: | Barclays, Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BNP Paribas Securities Corp., Societe Generale
|
| Distribution: | Rule 144A, Regulation S
|
| Trade date: | Nov. 5
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A
|
|
|
| Three-year floaters
|
| Amount: | $500 million
|
| Maturity: | 2015
|
| Coupon: | Libor plus 76 bps
|
| Price: | Par
|
| Yield: | Libor plus 76 bps
|
|
|
| Three-year fixed-rate notes
|
| Amount: | $3.5 billion
|
| Maturity: | 2015
|
| Spread: | Treasuries plus 85 bps
|
| Price talk: | 90 bps area
|
|
|
| Five-year notes
|
| Amount: | $4 billion
|
| Maturity: | 2017
|
| Spread: | Treasuries plus 115 bps
|
| Price talk: | 110 bps area
|
|
|
| Six-year notes
|
| Amount: | $1 billion
|
| Maturity: | 2018
|
| Spread: | Treasuries plus 140 bps
|
| Price talk: | 140 bps area
|
|
|
| 10-year notes
|
| Amount: | $3.1 billion
|
| Maturity: | 2022
|
| Spread: | Treasuries plus 130 bps
|
| Price talk: | 130 bps area
|
|
|
| 30-year bonds
|
| Amount: | $2.6 billion
|
| Maturity: | 2042
|
| Spread: | Treasuries plus 160 bps
|
| Price talk: | 160 bps area
|
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