Bristol-Myers records $1.09 billion tenders in oversubscribed offer

By Jennifer Chiou

New York, Dec. 3 - Bristol-Myers Squibb Co. announced the wrap of its $750 million cash tender offer for four series of notes, under which it obtained tenders for a total of $1.09 billion of the securities.

The tender ended at 11:59 p.m. ET on Dec. 2. It started on Nov. 4.

Listed in acceptance priority level, the company obtained tenders for $526,464,000, or 52.65%, of its $1 billion of 6.125% notes due May 1, 2038 and $448,807,000, or 46.78%, of its $959,363,000 of 5.875% notes due Nov. 15, 2036.

The company was also offering to purchase its $304.15 million of 7.15% debentures due June 15, 2023, for which it received $85,199,000 of tenders, and its $331.68 million of 6.8% debentures due Nov. 15, 2026, for which it took in tenders for $32,918,000 of notes. However, because the offer was oversubscribed at the early tender date, Bristol-Myers Squibb will not accept any of these notes, which had acceptance priority levels of three and four, respectively.

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.

For the lower-priority notes, 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.

In terms of accepted tenders, the company will purchase up to $500 million of the first-priority notes, leaving $250 million for the 5.875% notes. The proration factor for the 6.125% notes is roughly 95% while it stands at 55.72% for the second-priority notes.

Settlement was anticipated for Dec. 3.

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

Bristol-Myers Squibb is a New York biopharmaceutical company.

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