By Aleesia Forni
Virginia Beach, Va., Aug. 7 - Hospira Inc. (Ba1/BBB-) priced a split-rated issue of notes in two parts during Wednesday's session, according to a syndicate source and a FWP filing with the Securities and Exchange Commission.
The company sold $350 million of 5.2% notes due 2020 at Treasuries plus 325 basis points.
The notes priced at 99.751 to yield 5.243%
Hospira also brought to market $350 million 5.8% notes due 2023, which also came with a spread of 325 bps over Treasuries.
The 10-year notes sold at 99.663 to yield 5.854%
Joint bookrunners for the seven-year deal were Morgan Stanley & Co. LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC, Citigroup Global Markets, RBS Securities Inc. and U.S. Bancorp Investments Inc.
Morgan Stanley & Co. LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC, Citigroup Global Markets, RBS Securities Inc. and Mitsubishi UFJ Securities (USA) Inc. were joint bookrunners for the 10-year tranche.
The company plans to use the proceeds from the sale, along with cash on hand, to redeem its $400 million outstanding of 5.9% notes due June 2014 and $250 million outstanding 6.4% notes due May 2015.
The specialty pharmaceutical and medical delivery company is based in Lake Forest, Ill.
| Issuer: | Hospira Inc.
|
| Issue: | Senior unsecured notes
|
| Amount: | $1 billion
|
| Trade date: | Aug. 7
|
| Settlement date: | Aug. 12
|
| Change of Control: | 101%
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BBB-
|
|
|
| Seven-year notes
|
| Amount: | $350 million
|
| Maturity: | Aug. 12, 2020
|
| Bookrunners: | Morgan Stanley & Co. LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC., Citigroup Global Markets, RBS Securities Inc., U.S. Bancorp Investments Inc.
|
| Co-managers: | Fifth Third Securities, Inc., Mitsubishi UFJ Securities (USA), Inc., PNC Capital Markets LLC
|
| Coupon: | 5.2%
|
| Price: | 99.751
|
| Yield: | 5.243%
|
| Spread: | Treasuries plus 325 bps
|
|
|
| Ten-year notes
|
| Amount: | $350 million
|
| Maturity: | Aug. 12, 2023
|
| Bookrunners: | Morgan Stanley & Co. LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC., Citigroup Global Markets, RBS Securities Inc., Mitsubishi UFJ Securities (USA) Inc.
|
| Co-managers: | U.S. Bancorp Investments Inc., PNC Capital Markets LLC, Fifth Third Securities
|
| Coupon: | 5.8%
|
| Price: | 99.663
|
| Yield: | 5.845%
|
| Spread: | Treasuries plus 325 bps
|
|
|
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