By Cristal Cody
Tupelo, Miss., Sept. 13 – AbbVie Inc. sold $6 billion of fixed-rate senior notes (Baa2/A-) in four tranches on Thursday, according to a market source.
A $1.25 billion offering of 3.375% three-year notes priced at a spread of 60 basis points over Treasuries.
AbbVie sold $1.25 billion of 3.75% five-year notes with a Treasuries plus 90 bps spread.
The $1.75 billion of 4.25% 10-year notes were placed at a 138 bps spread over Treasuries.
Also, $1.75 billion of 4.875% 30-year bonds priced at a spread of 183 bps over Treasuries.
BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and BNP Paribas Securities Corp. were the bookrunners.
Proceeds will be used to redeem or repay at maturity all of the company’s $1 billion of 2% senior notes due Nov. 6, 2018, to prepay or repay at maturity its $2 billion term loan facility and for general corporate purposes.
AbbVie is a biopharmaceutical company based in North Chicago, Ill.
| Issuer: | AbbVie Inc.
|
| Amount: | $6 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and BNP Paribas Securities Corp.
|
| Trade date: | Sept. 13
|
| Ratings: | Moody’s: Baa2
|
| S&P: A-
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Nov. 14, 2021
|
| Coupon: | 3.375%
|
| Spread: | Treasuries plus 60 bps
|
| Price guidance: | Treasuries plus 65 bps area, plus or minus 5 bps; initial price talk at Treasuries plus 80 bps to 85 bps area
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Nov. 14, 2023
|
| Coupon: | 3.75%
|
| Spread: | Treasuries plus 90 bps
|
| Price guidance: | Treasuries plus 95 bps area, plus or minus 5 bps; initial price talk at Treasuries plus 105 bps to 110 bps area
|
|
|
| 10-year notes
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| Amount: | $1.75 billion
|
| Maturity: | Nov. 14, 2028
|
| Coupon: | 4.25%
|
| Spread: | Treasuries plus 138 bps
|
| Price guidance: | Treasuries plus 140 bps area, plus or minus 2 bps; initial price talk at Treasuries plus 150 bps to 155 bps area
|
|
|
| 30-year notes
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| Amount: | $1.75 billion
|
| Maturity: | Nov. 14, 2048
|
| Coupon: | 4.875%
|
| Spread: | Treasuries plus 183 bps
|
| Price guidance: | Treasuries plus 185 bps area, plus or minus 2 bps; initial price talk at Treasuries plus 200 bps area
|
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