By Cristal Cody
Tupelo, Miss., Nov. 13 – AbbVie Inc. priced a $30 billion 10-tranche offering of senior notes (Baa2/A-) on Tuesday to fund its acquisition of Allergan plc, according to market sources and a company news release.
The notes were priced via Rule 144A and Regulation S.
The company sold $750 million of 18-month floating-rate notes at Libor plus 35 basis points.
A $750 million tranche of two-year floating-rate notes priced at Libor plus 46 bps.
The company placed $1.75 billion of 2.15% two-year fixed-rate notes at a spread of 50 bps over Treasuries.
A $750 million tranche of three-year floaters priced at Libor plus 65 bps, while the company sold $3 billion of 2.3% three-year fixed-rate notes at a spread of 65 bps over Treasuries.
AbbVie placed $3.75 billion of five-year notes at a spread of 90 bps over Treasuries.
The company priced $4 billion of 2.95% seven-year notes at a spread of 115 bps over Treasuries.
A $5.5 billion tranche of 3.2% 10-year notes came at a Treasuries plus 130 bps spread.
AbbVie sold $4 billion of 4.05% 20-year notes with a spread of 170 bps over Treasures.
Finally, the company priced $5.75 billion of 4.25% 30-year notes at a Treasuries plus 190 bps spread.
BofA Securities, Inc., Barclays and Morgan Stanley & Co. LLC were the active bookrunners.
AbbVie held fixed income investor calls for the deal on Thursday and Friday.
Proceeds will be used to fund a portion of the purchase price of Allergan, with any remaining proceeds to be used for general corporate purposes.
The cash and stock acquisition of the Dublin-based pharmaceutical manufacturer (BBB/BBB-) is valued at about $63 billion.
AbbVie said it has secured underwritten financing commitments from Morgan Stanley Senior Funding, Inc. and MUFG Bank, Ltd. for approximately $38 billion to finance, together with cash on hand, the cash portion of the merger.
If the merger is not completed on or before Jan. 30, 2021, AbbVie will be required to redeem the notes at 101%, plus accrued and unpaid interest.
AbbVie is a biopharmaceutical company based in North Chicago, Ill.
| Issuer: | AbbVie Inc.
|
| Amount: | $30 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., Barclays and Morgan Stanley & Co. LLC
|
| Call feature: | Special mandatory call at 101% if merger not completed on or before Jan. 30, 2021
|
| Trade date: | Nov. 12
|
| Settlement date: | Nov. 21
|
| Ratings: | Moody’s: Baa2
|
| S&P: A-
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Fixed income investor calls
|
|
|
| 18-month floaters
|
| Amount: | $750 million
|
| Description: | Senior floating-rate notes
|
| Maturity: | May 21, 2021
|
| Coupon: | Libor plus 35 bps
|
|
|
| Two-year floaters
|
| Amount: | $750 million
|
| Description: | Senior floating-rate notes
|
| Maturity: | Nov. 19, 2021
|
| Coupon: | Libor plus 46 bps
|
|
|
| Two-year notes
|
| Amount: | $1.75 billion
|
| Description: | Senior fixed-rate notes
|
| Maturity: | Nov. 21, 2021
|
| Coupon: | 2.15%
|
| Spread: | Treasuries plus 50 bps
|
|
|
| Three-year floaters
|
| Amount: | $750 million
|
| Description: | Senior floating-rate notes
|
| Maturity: | Nov. 21, 2022
|
| Coupon: | Libor plus 65 bps
|
|
|
| Three-year notes
|
| Amount: | $3 billion
|
| Description: | Senior fixed-rate notes
|
| Maturity: | Nov. 21, 2022
|
| Coupon: | 2.3%
|
| Spread: | Treasuries plus 65 bps
|
|
|
| Five-year notes
|
| Amount: | $3.75 billion
|
| Description: | Senior fixed-rate notes
|
| Maturity: | Nov. 21, 2024
|
| Coupon: | 2.6%
|
| Spread: | Treasuries plus 90 bps
|
|
|
| Seven-year notes
|
| Amount: | $4 billion
|
| Description: | Senior fixed-rate notes
|
| Maturity: | Nov. 21, 2026
|
| Coupon: | 2.95%
|
| Spread: | Treasuries plus 115 bps
|
|
|
| 10-year notes
|
| Amount: | $5.5 billion
|
| Description: | Senior fixed-rate notes
|
| Maturity: | Nov. 21, 2029
|
| Coupon: | 3.2%
|
| Spread: | Treasuries plus 130 bps
|
|
|
| 20-year notes
|
| Amount: | $4 billion
|
| Description: | Senior fixed-rate notes
|
| Maturity: | Nov. 21, 2039
|
| Coupon: | 4.05%
|
| Spread: | Treasuries plus 170 bps
|
|
|
| 30-year notes
|
| Amount: | $5.75 billion
|
| Description: | Senior fixed-rate notes
|
| Maturity: | Nov. 21, 2049
|
| Coupon: | 4.25%
|
| Spread: | Treasuries plus 190 bps
|
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