Published on 8/15/2022 in the Prospect News Investment Grade Daily.
New Issue: Amgen prices $3 billion of senior notes due 2029, 2033, 2053
Chicago, Aug. 15 – Amgen Inc. priced $3 billion of notes in a tripart sale (Baa1/A-/BBB+) on Monday, according to an FWP filing with the Securities and Exchange Commission.
The offer includes:
• $1.25 billion of 4.05% notes due 2029 which priced at 99.867 to yield 4.072%, or at a spread of 120 basis points to Treasuries;
• $750 million of 4.2% notes due March 1, 2033 which priced at 99.998 to yield 4.2%, or at a spread of 140 bps over Treasuries; and
• $1 billion of 4.875% notes due March 1, 2053 which priced at 99.982 to yield 4.876%, or at a spread of 175 bps to Treasuries.
The notes feature a make-whole call at Treasuries plus 20 bps until two months prior to maturity for the 2029 notes, at Treasuries plus 25 bps until three months prior to maturity for the 2033 notes and at Treasuries plus 30 bps until six months prior to maturity for the 2053 notes and par calls after those dates.
BofA Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC are the bookrunners.
Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Mizuho Securities USA LLC are also joint bookrunners.
Proceeds will be used for general corporate purposes, including working capital, Amgen business investments, funding for acquisitions, including the proposed acquisition of ChemoCentryx, and upcoming debt maturities.
Amgen is a Thousand Oaks, Calif., manufacturer and marketer of human therapeutics based upon advances in cellular and molecular biology.
| Issuer: | Amgen Inc.
|
| Amount: | $3 billion
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| Issue: | Senior notes
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| Bookrunners: | BofA Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Mizuho Securities USA LLC
|
| Co-managers: | BNP Paribas Securities Corp., HSBC Securities (USA) Inc., MUFG Securities Americas Inc., Piper Sandler & Co., RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., Wells Fargo Securities, LLC, AmeriVet Securities Inc., Blaylock Van, LLC, MFR Securities, Inc. and Penserra Securities LLC
|
| Trustee: | Bank of New York Mellon Trust Co., NA
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| Counsel to issuer: | Latham & Watkins LLP
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| Counsel to underwriters: | Shearman & Sterling LLP
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| Change of control: | At 101
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| Trade date: | Aug. 15
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| Settlement date: | Aug. 18
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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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|
|
| 2029 notes
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| Amount: | $1.25 billion
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| Maturity: | Aug. 18, 2029
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| Coupon: | 4.05%
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| Price: | 99.867
|
| Yield: | 4.072%
|
| Spread: | Treasuries plus 120 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps until June 18, 2029; thereafter at par
|
| Cusip: | 031162DH0
|
|
|
| 2033 notes
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| Amount: | $750 million
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| Maturity: | March 1, 2033
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| Coupon: | 4.2%
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| Price: | 99.998
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| Yield: | 4.2%
|
| Spread: | Treasuries plus 140 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps until March 1, 2023; thereafter at par
|
| Cusip: | 031162DJ6
|
|
|
| 2053 notes
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| Amount: | $1 billion
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| Maturity: | March 1, 2053
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| Coupon: | 4.875%
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| Price: | 99.982
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| Yield: | 4.876%
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| Spread: | Treasuries plus 175 bps
|
| Call features: | Make-whole call at Treasuries plus 30 bps until Dec. 1, 2052; thereafter at par
|
| Cusip: | 031162DK3
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