By Paul A. Harris
St. Louis, Sept. 8 - AmerisourceBergen Corp. completed a $900 million two-part senior notes transaction (Ba2/BB+/BBB-) on Thursday, according to a syndicate source.
The Valley Forge, Pa., pharmaceutical services company priced $500 million of 10-year notes at 99.50 with a 5 7/8% coupon to yield 5.942%, toward the tight end of the 6% area price talk.
The company also priced $400 million of seven-year notes at 99.50 with a 5 5/8% coupon to yield 5.713%, below the mid-point of the 5¾% area price talk.
Lehman Brothers, Banc of America Securities LLC and JP Morgan were joint bookrunners for the Rule 144A/Regulation S with registration rights offering. The co-managers were Scotia Capital, Wachovia Securities and Wells Fargo Securities.
Proceeds will be used to finance the tender for $500 million of the company's 8 1/8% senior notes due 2008 and $300 million of its 7¼% senior notes due 2012, and for general corporate purposes.
| Issuer: | AmerisourceBergen Corp.
|
| Amount: | $900 million
|
| Security description: | Senior notes
|
| Bookrunners: | Lehman Brothers, Banc of America Securities LLC and JP Morgan
|
| Co-managers: | Scotia Capital, Wachovia Securities, Wells Fargo Securities
|
| Trade date: | Sept. 8
|
| Settlement date: | Sept. 14
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB+
|
| Fitch: BBB-
|
|
|
| 10-year tranche
|
| Amount: | $500 million
|
| Maturity: | Sept. 15, 2015
|
| Coupon: | 5 7/8%
|
| Price: | 99.50
|
| Yield: | 5.942%
|
| Spread: | 181 basis points
|
| Call protection: | Make-whole call at Treasuries plus 50 basis points
|
| Equity clawback: | Until Sept. 15, 2008 for up to 35% at 105.875
|
| Price talk: | 6% area
|
|
|
| Seven-year tranche
|
| Amount: | $400 million
|
| Maturity: | Sept. 15, 2012
|
| Coupon: | 5 5/8%
|
| Price: | 99.50
|
| Yield: | 5.713%
|
| Spread: | 174 basis points
|
| Call protection: | Make-whole call at Treasuries plus 50 basis points
|
| Equity clawback: | Until Sept. 15, 2008 for up to 35% at 105.625
|
| Price talk: | 5¾% area
|
|
|
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