By Andrea Heisinger
New York, March 22 - Sanofi-aventis SA priced a jumbo deal of $7 billion of new paper (A2/AA-) late on Tuesday in an increased six tranches, a market source said.
The sale had been initially announced in five parts, and a fixed-rate three-year note was added.
A $1 billion tranche of one-year floating-rate notes priced at par to yield three-month Libor plus 5 basis points.
A second $1 billion tranche of floaters with a two-year maturity priced at par to yield three-month Libor plus 20 bps.
And a $750 million tranche of three-year floaters was sold at par to yield three-month Libor plus 31 bps.
All of the floating-rate notes are non-callable.
A $750 million tranche of three-year fixed-rate notes priced to yield Treasuries plus 55 bps.
A $1.5 billion tranche of five-year notes priced at a spread of 70 bps over Treasuries.
Finally, there was a $2 billion tranche of 10-year notes, which priced at Treasuries plus 80 bps.
Full terms were not available at press time due to the lateness of pricing.
The fixed-rate notes have a mandatory redemption provision if an exchange offer in relation to Genzyme isn't finished under the merger agreement on or before Sept. 30. If the mandatory redemption is put in place, the notes will be redeemed on Oct. 31, if the merger agreement is terminated before Sept. 30. They will be redeemed under a change-of-control put at 101%.
The three floating-rate tranches carry the same mandatory redemption provisions.
According to Prospect News data, Sanofi has no recent outstanding debt.
Bookrunners were BNP Paribas Securities Corp., Merrill Lynch, J.P. Morgan Securities LLC and Societe Generale.
Co-managers were Credit Agricole Securities, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., RBS Securities Inc. and Santander Investment Securities Inc.
Proceeds are being used to fund, in part, the consideration payable to biotechnology company Genzyme Corp. for its acquisition worth $20.1 billion. Any remainder will be used for general corporate purposes.
The pharmaceutical company is based in Paris.
| Issuer: | Sanofi-aventis SA
|
| Amount: | $7 billion
|
| Securities: | Notes
|
| Bookrunners: | BNP Paribas Securities Corp., Merrill Lynch, J.P. Morgan Securities LLC, Societe Generale
|
| Co-managers: | Credit Agricole Securities, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., RBS Securities Inc., Santander Investment Securities Inc.
|
| Trade date: | March 22
|
|
|
| One-year floaters
|
| Amount: | $1 billion
|
| Term: | One year
|
| Coupon: | Three-month Libor plus 5 bps
|
| Price: | Par
|
| Yield: | Three-month Libor plus 5 bps
|
| Call: | Non-callable
|
|
|
| Two-year floaters
|
| Amount: | $1 billion
|
| Term: | Two years
|
| Coupon: | Three-month Libor plus 20 bps
|
| Price: | Par
|
| Yield: | Three-month Libor plus 20 bps
|
| Call: | Non-callable
|
|
|
| Three-year floaters
|
| Amount: | $750 million
|
| Term: | Three years
|
| Coupon: | Three-month Libor plus 31 bps
|
| Price: | Par
|
| Yield: | Three-month Libor plus 31 bps
|
| Call: | Non-callable
|
|
|
| Three-year fixed-rate notes
|
| Amount: | $750 million
|
| Term: | Three years
|
| Spread: | Treasuries plus 55 bps
|
|
|
| Five-year fixed-rate notes
|
| Amount: | $1.5 billion
|
| Term: | Five years
|
| Spread: | Treasuries plus 70 bps
|
|
|
| 10-year fixed-rate notes
|
| Amount: | $2 billion
|
| Term: | 10 years
|
| Spread: | Treasuries plus 80 bps
|
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