Bristol-Myers Squibb sets tender offer prices for 6.125%, 5.875% notes

By Angela McDaniels

Tacoma, Wash., Nov. 18 - Bristol-Myers Squibb Co. determined what it will pay in the tender offer for its $1 billion of 6.125% notes due May 1, 2038 and $959,363,000 of 5.875% notes due Nov. 15, 2036, according to a company news release.

For each $1,000 principal amount, holders will receive $1,152.83 for the 6.125% notes and $1,113.12 for the 5.875% notes. The company will also pay accrued interest.

These amounts include an early tender premium of $50.00 for each note tendered by the early tender date, which was 5 p.m. ET on Nov. 17.

The purchase prices were set based on the bid-side price of the 4.375% Treasury bond due May 15, 2040 at 10:30 a.m. ET on Nov. 18 plus 75 basis points.

The company is offering to purchase up to $750 million principal amount of notes, and the principal amount of 6.125% notes and 5.875% notes accepted will not exceed, in each case, $500 million. The notes are listed in order of acceptance priority level.

The tender offer will end at 11:59 p.m. ET on Dec. 2.

When the offer began on Nov. 4, the company was also offering to purchase its $304.15 million of 7.15% debentures due June 15, 2023 and $331.68 million of 6.8% debentures due Nov. 15, 2026. However, because the offer was oversubscribed as of the early tender date, Bristol-Myers Squibb will not accept any of these notes, which had acceptance priority levels of three and four, respectively.

The purchase price would have been $1,311.24 for each 7.15% debenture and $1,210.43 for each 6.8% debenture, including the early tender premium.

As of the early tender date, holders had tendered $524,749,000 principal amount, or 52.47%, of the 6.125% notes, $448,532,000 principal amount, or 46.75%, of the 5.875% notes, $85,199,000 principal amount, or 28.01%, of the 7.15% debentures and $32,918,000 principal amount, or 9.92%, of the 6.8% debentures.

Deutsche Bank Securities Inc. (866 627-0391) and Barclays Capital Inc. (800 438-3242) are the dealer managers, and Global Bondholder Services Corp. (866 952-2200 or 212 430-3774) is the information agent.

Bristol-Myers Squibb is a New York biopharmaceutical company.

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