By Aleesia Forni
Virginia Beach, May 5 – AbbVie Inc. priced a combined $16.7 billion of senior notes (Baa1/A) in six tranches on Tuesday, according to a market source.
A $3 billion 1.8% note due 2018 sold at 99.898 to yield 1.835%, or Treasuries plus 85 basis points.
There was also a $3.75 billion 2.5% note due 2020 priced with a spread of 105 bps over Treasuries. The issue priced at 99.59 to yield 2.588%.
The company also sold $1 billion of 3.2% notes due 2022 at 99.803 to yield 3.23%, or Treasuries plus 130 bps.
A $3.75 billion 3.6% note due 2025 sold at 99.825 to yield 3.621%. Pricing was at a spread of Treasuries plus 145 bps.
There was a $2.5 billion 4.5% note due 2035 priced at 99.309 to yield 4.553%, or Treasuries plus 165 bps.
Finally, $2.7 billion of 4.7% notes due 2045 sold with a spread of Treasuries plus 180 bps. Pricing was at 99.952 to yield 4.703%.
All tranches sold at the tight end of price guidance.
Morgan Stanley & Co. LLC, BofA Merrill Lynch, Barclays and Deutsche Bank Securities Inc. are the bookrunners.
Proceeds will be used to fund the cash component of the acquisition of Pharmacyclics, Inc., to finance the repurchase of shares of its common stock for cash in connection with the acquisition and for general corporate purposes.
The biopharmaceutical company is based in Abbott Park, Ill.
| Issuer: | AbbVie Inc.
|
| Issue: | Senior notes
|
| Amount: | $16.7 billion
|
| Bookrunners: | Morgan Stanley & Co. LLC, BofA Merrill Lynch, Barclays, Deutsche Bank Securities Inc.
|
| Trade date: | May 5
|
| Settlement date: | May 14
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: A
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $3 billion
|
| Maturity: | May 14, 2018
|
| Coupon: | 1.8%
|
| Price: | 99.898
|
| Yield: | 1.835%
|
| Spread: | 85 bps over Treasuries
|
| Price guidance: | 90 bps area over Treasuries, tightened from 105 bps area
|
| Make-whole call: | 15 bps
|
|
|
| Five-year notes
|
| Amount: | $3.75 billion
|
| Maturity: | May 14, 2020
|
| Coupon: | 2.5%
|
| Price: | 99.59
|
| Yield: | 2.588%
|
| Spread: | 105 bps over Treasuries
|
| Price guidance: | 110 bps area over Treasuries, tightened from 120 bps area
|
| Make-whole call: | 20 bps
|
|
|
| Seven-year notes
|
| Amount: | $1 billion
|
| Maturity: | Nov. 6, 2022
|
| Coupon: | 3.2%
|
| Price: | 99.803
|
| Yield: | 3.23%
|
| Spread: | 130 bps over Treasuries
|
| Price guidance: | 135 bps area over Treasuries, tightened from 150 bps area
|
| Make-whole call: | 20 bps
|
|
|
| 10-year notes
|
| Amount: | $3.75 billion
|
| Maturity: | May 14, 2025
|
| Coupon: | 3.6%
|
| Price: | 99.825
|
| Yield: | 3.621%
|
| Spread: | 145 bps over Treasuries
|
| Price guidance: | 150 bps area over Treasuries, tightened from 160 bps area
|
| Make-whole call: | 25 bps
|
|
|
| 20-year bonds
|
| Amount: | $2.5 billion
|
| Maturity: | May 14, 2035
|
| Coupon: | 4.5%
|
| Price: | 99.309
|
| Yield: | 4.553%
|
| Spread: | 165 bps over Treasuries
|
| Price guidance: | 170 bps area over Treasuries, tightened from 180 bps area
|
| Make-whole call: | 25 bps
|
|
|
| 30-year bonds
|
| Amount: | $2.7 billion
|
| Maturity: | May 14, 2045
|
| Coupon: | 4.7%
|
| Price: | 99.952
|
| Yield: | 4.703%
|
| Spread: | 180 bps over Treasuries
|
| Price guidance: | 185 bps area over Treasuries, tightened from 195 bps area
|
| Make-whole call: | 30 bps
|
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