Published on 8/6/2021 in the Prospect News Investment Grade Daily.
New Issue: Amgen sells $5 billion notes in four parts due 2028, 2032, 2041, 2052
By Devika Patel
Knoxville, Tenn., Aug. 6 – Amgen Inc. priced a $5 billion four-part offering of notes (Baa1/A-/BBB+) on Thursday, according an FWP filing with the Securities and Exchange Commission.
The issuer sold $1.25 billion of 1.65% notes due Aug. 15, 2028 at 99.908 to yield 1.664%, or a spread over Treasuries of 65 basis points; talk was in the Treasuries plus 85 bps to 90 bps area.
Amgen also sold $1.25 billion of 2% notes due Jan. 15, 2032 at 99.328 to yield 2.072%. The notes priced with a spread of 85 bps over Treasuries; initial price talk had the notes coming in the Treasuries plus 100 bps to 105 bps area.
Additionally, the company sold $1.15 billion of 2.8% notes due Aug. 15, 2041 at 99.695 to yield 2.82%, or at a spread of Treasuries plus 105 bps. Initial price talk had the notes expected in the Treasuries plus 120 bps to 125 bps area.
There were also $1.35 billion of 3% notes due Jan. 15, 2052 at 99.388 to yield 3.031%, or at a spread of Treasuries plus 115 bps. Initial price talk for the notes was in the Treasuries plus 130 bps to 130 bps area.
Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Barclays and Goldman Sachs & Co. LLC are the joint bookrunners.
Proceeds will be used to repay debt maturities due in 2022 and for general corporate purposes.
The biopharmaceutical company is based in Thousand Oaks, Calif.
Issuer: | Amgen Inc.
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Issue: | Notes
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Amount: | $5 billion
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Bookrunners: | Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Barclays and Goldman Sachs & Co. LLC, Goldman Sachs & Co. LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and MUFG Securities Americas Inc.
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Co-managers: | Academy Securities, Inc., BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Mizuho Securities USA LLC, RBC Capital Markets, LLC, R. Seelaus & Co., LLC, Samuel A. Ramirez & Co. Inc., Siebert Williams Shank & Co., LLC, SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC
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Trade date: | Aug. 5
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Settlement date: | Aug. 9
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Ratings: | Moody’s: Baa1
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| S&P: A-
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| Fitch: BBB+
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Distribution: | SEC registered
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2028 notes
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Amount: | $1.25 billion
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Maturity: | Aug. 15, 2028
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Coupon: | 1.65%
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Price: | 99.908
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Yield: | 1.664%
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Spread: | Treasuries plus 65 bps
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Call features: | Make-whole call at Treasuries plus 10 bps; par call beginning June 15, 2028
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Price talk: | Treasuries plus 85 bps to 90 bps area
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2032 notes
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Amount: | $1.25 billion
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Maturity: | Jan. 15, 2032
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Coupon: | 2%
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Price: | 99.328
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Yield: | 2.072%
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Spread: | Treasuries plus 85 bps
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Call features: | Make-whole call at Treasuries plus 15 bps; par call beginning Oct. 15, 2031
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Price talk: | Treasuries plus 100 bps to 105 bps area
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2041 notes
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Amount: | $1.15 billion
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Maturity: | Aug. 15, 2041
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Coupon: | 2.8%
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Price: | 99.695
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Yield: | 2.82%
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Spread: | Treasuries plus 105 bps
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Call features: | Make-whole call at Treasuries plus 20 bps; par call beginning Feb. 15, 2041
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Price talk: | Treasuries plus 120 bps to 125 bps area
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2052 notes
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Amount: | $1.35 billion
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Maturity: | Jan. 15, 2052
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Coupon: | 3%
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Price: | 99.388
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Yield: | 3.031%
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Spread: | Treasuries plus 115
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Call features: | Make-whole call at Treasuries plus 20 bps; par call beginning July 15, 2051
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Price talk: | Treasuries plus 130 bps to 130 bps area
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