Published on 3/3/2015 in the Prospect News Investment Grade Daily.
New Issue: Actavis prices $21 billion 10-part offering of senior notes
By Aleesia Forni
Virginia Beach, March 3 – Actavis Funding SCS priced $21 billion of senior notes (Baa3/BBB-/BBB-) on Tuesday in 10 tranches, according to a market source and an FWP filed with the Securities and Exchange Commission.
There was $500 million of 18-month floating-rate notes priced at par to yield Libor plus 87.5 basis points.
The floaters were guided in the 90 bps area over Treasuries. Initial price talk was set in the 100 bps area over Treasuries.
A $1 billion tranche of 1.85% two-year notes priced at 99.954 to yield 1.874%, or Treasuries plus 120 bps.
The notes sold at the tight end of guidance set at 120 bps to 125 bps over Treasuries, tightening from initial price talk of 135 bps to 140 bps over Treasuries.
There was also $3 billion of 2.35% three-year notes priced at 99.951 to yield 2.367%, or Treasuries plus 130 bps.
The notes were guided at 130 bps to 135 bps over Treasuries after having firmed from earlier talk set at 145 bps to 150 bps over Treasuries.
A $500 million tranche of floaters due 2018 sold at par to yield Libor plus 108 bps.
The notes were guided at the Libor equivalent to the three-year fixed-rate notes.
The company also priced $3.5 billion of 3% five-year notes at 99.995 to yield 3.001%, or Treasuries plus 140 bps.
The notes priced at the tight end of guidance set at 140 bps to 145 bps over Treasuries. Initial price talk was set at Treasuries plus 160 bps to 165 bps over Treasuries.
A $500 million five-year floater sold at par to yield Libor plus 125.5 bps.
The tranche of notes was added following the deal’s announcement on Monday and was guided at the Libor equivalent to the five-year fixed-rate note.
A $3 billion tranche of 3.45% seven-year notes sold at 99.858 to yield 3.473%, or Treasuries plus 155 bps.
The note was guided in the 160 bps area, tightening from initial talk set at Treasuries plus 180 bps to 185 bps.
The company priced $4 billion of 3.8% 10-year notes at 99.645 to yield 3.843%. The notes sold with a spread of 175 bps over Treasuries.
Pricing was at the tight end of guidance set in the 180 bps area following initial talk in the 200 bps area over Treasuries.
A $2.5 billion tranche of 4.55% 20-year bonds sold with a spread of 190 bps over Treasuries. Pricing was at 99.57 to yield 4.583%.
The 20-year note was guided in the area of 195 bps over Treasuries. Initial talk was set at the Treasuries plus 220 bps area.
Finally, a $2.5 billion tranche of 4.75% 30-year bonds sold at 99.477 to yield 4.783%, or Treasuries plus 210 bps.
Price guidance for the 30-year tranche was set in the 215 bps area. The notes were initially talked in the area of 240 bps over Treasuries.
The notes are guaranteed by Warner Chilcott Ltd., Actavis Capital Sarl and Actavis, Inc.
J.P. Morgan Securities LLC, Mizuho Securities (USA) Inc. and Wells Fargo Securities LLC were the bookrunners on all of the tranches, along with additional bookrunners on specific tranches.
Proceeds will be used to support the acquisition of Allergan, Inc.
The deal is second-largest bond offering on record behind Verizon Communications Inc.’s $49 billion offering which priced in eight tranches on Sept. 11, 2013.
Actavis is a pharmaceutical company with headquarters in Dublin. Irvine, Calif.-based Allergan is a multi-specialty health care company.
| Issuer: | Actavis Funding SCS
|
| Guarantors: | Warner Chilcott Ltd., Actavis Capital Sarl, Actavis, Inc.
|
| Issue: | Senior notes
|
| Amount: | $21 billion
|
| Bookrunners: | J.P. Morgan Securities LLC, Mizuho Securities (USA) Inc., Wells Fargo Securities LLC (All tranches – other bookrunners listed below)
|
| Trade date: | March 3
|
| Settlement date: | March 12
|
| Ratings: | Moody’s: Baa3
|
| Standard & Poor’s: BBB-
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| Fitch: BBB-
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| Distribution: | SEC registered
|
|
|
| 18-month floaters
|
| Amount: | $500 million
|
| Maturity: | Sept. 1, 2016
|
| Additional bookrunners: | SMBC Nikko Securities America, Inc., MUFG
|
| Co-managers: | Barclays, BNP Paribas Securities Corp., HSBC Securities (USA) Inc., RBS Securities Inc., TD Securities (USA) LLC, ANZ Securities, Inc., Citigroup Global Markets Inc., DNB Markets, Inc., Lloyds Securities Inc., Scotia Capital (USA) Inc., Morgan Stanley & Co. LLC, BBVA Securities Inc., Credit Agricole Securities (USA) Inc., Fifth Third Securities, Inc., PNC Capital Markets LLC, Santander Investment Securities Inc., Academy Securities, Inc., Blaylock Beal Van, LLC, Drexel Hamilton, LLC, Lebenthal & Co., LLC, Mischler Financial Group, Inc., Samuel A. Ramirez & Co., Inc., Siebert Brandford Shank & Co., LLC, Williams Capital Group, LP
|
| Coupon: | Libor plus 87.5 bps
|
| Price: | Par
|
| Yield: | Libor plus 87.5 bps
|
| Price talk: | Libor plus 90 bps, tightened from 100 bps area
|
|
|
| Two-year notes
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| Amount: | $1 billion
|
| Maturity: | March 1, 2017
|
| Additional bookrunners: | SMBC Nikko Securities America Inc., MUFG
|
| Co-managers: | Barclays, BNP Paribas Securities Corp., HSBC Securities (USA) Inc., RBS Securities Inc., TD Securities (USA) LLC, ANZ Securities, Inc., Citigroup Global Markets Inc., DNB Markets, Inc., Lloyds Securities Inc., Scotia Capital (USA) Inc., Morgan Stanley & Co. LLC, BBVA Securities Inc., Credit Agricole Securities (USA) Inc., Fifth Third Securities, Inc., PNC Capital Markets LLC, Santander Investment Securities Inc., Academy Securities, Inc., Blaylock Beal Van, LLC, Drexel Hamilton, LLC, Lebenthal & Co., LLC, Mischler Financial Group, Inc., Samuel A. Ramirez & Co., Inc., Siebert Brandford Shank & Co., LLC, Williams Capital Group, LP
|
| Coupon: | 1.85%
|
| Price: | 99.954
|
| Yield: | 1.874%
|
| Spread: | 120 bps over Treasuries
|
| Price talk: | 120 bps to 125 bps over Treasuries, tightened from 135 bps to 140 bps
|
| Make-whole call: | 20 bps
|
|
|
| Three-year notes
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| Amount: | $3 billion
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| Maturity: | March 12, 2018
|
| Additional bookrunners: | BNP Paribas Securities Corp., SMBC Nikko Securities America Inc.
|
| Co-managers: | Barclays, HSBC Securities (USA) Inc., MUFG, RBS Securities Inc., TD Securities (USA) LLC, ANZ Securities, Inc., Citigroup Global Markets Inc., DNB Markets, Inc., Lloyds Securities Inc., Scotia Capital (USA) Inc., Morgan Stanley & Co. LLC, BBVA Securities Inc., Credit Agricole Securities (USA) Inc., Fifth Third Securities, Inc., PNC Capital Markets LLC, Santander Investment Securities Inc., Academy Securities, Inc., Blaylock Beal Van, LLC, Drexel Hamilton, LLC, Lebenthal & Co., LLC, Mischler Financial Group, Inc., Samuel A. Ramirez & Co. Inc., Siebert Brandford Shank & Co., LLC, Williams Capital Group, LP
|
| Coupon: | 2.35%
|
| Price: | 99.951
|
| Yield: | 2.367%
|
| Spread: | 130 bps
|
| Price talk: | 130 bps to 135 bps, tightened from 145 bps to 150 bps
|
| Make-whole call: | 20 bps
|
|
|
| Three-year floaters
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| Amount: | $500 million
|
| Maturity: | March 12, 2018
|
| Additional bookrunners: | RBS Securities Inc., TD Securities (USA) LLC
|
| Co-managers: | Barclays, BNP Paribas Securities Corp., HSBC Securities (USA) Inc., MUFG, SMBC Nikko Securities America, Inc., ANZ Securities, Inc., Citigroup Global Markets Inc., DNB Markets, Inc., Lloyds Securities Inc., Scotia Capital (USA) Inc., Morgan Stanley & Co. LLC, BBVA Securities Inc., Credit Agricole Securities (USA) Inc., Fifth Third Securities, Inc., PNC Capital Markets LLC, Santander Investment Securities Inc., Academy Securities, Inc., Blaylock Beal Van, LLC, Drexel Hamilton, LLC, Lebenthal & Co., LLC, Mischler Financial Group, Inc., Samuel A. Ramirez & Co., Inc., Siebert Brandford Shank & Co., LLC, Williams Capital Group, LP
|
| Coupon: | Libor plus 108 bps
|
| Price: | Par
|
| Yield: | Libor plus 108 bps
|
| Price talk: | Libor equivalent to three-year fixed-rate notes
|
|
|
| Five-year notes
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| Amount: | $3.5 billion
|
| Maturity: | March 12, 2020
|
| Additional bookrunners: | BNP Paribas Securities Corp., SMBC Nikko Securities America Inc.
|
| Co-managers: | Barclays, HSBC Securities (USA) Inc., MUFG, RBS Securities Inc., TD Securities (USA) LLC, ANZ Securities, Inc., Citigroup Global Markets Inc., DNB Markets, Inc., Lloyds Securities Inc., Scotia Capital (USA) Inc., Morgan Stanley & Co. LLC, BBVA Securities Inc., Credit Agricole Securities (USA) Inc., Fifth Third Securities, Inc., PNC Capital Markets LLC, Santander Investment Securities Inc., Academy Securities, Inc., Blaylock Beal Van, LLC, Drexel Hamilton, LLC, Lebenthal & Co., LLC, Mischler Financial Group, Inc., Samuel A. Ramirez & Co., Inc., Siebert Brandford Shank & Co., LLC, Williams Capital Group, LP
|
| Coupon: | 3%
|
| Price: | 99.995
|
| Yield: | 3.001%
|
| Spread: | 140 bps over Treasuries
|
| Price talk: | 140 bps to 145 bps over Treasuries, tightened from 160 bps to 165 bps
|
| Make-whole call: | 20 bps prior to Feb. 12, 2020, then callable at par
|
|
|
| Five-year floaters
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| Amount: | $500 million
|
| Maturity: | March 12, 2020
|
| Additional bookrunners: | BNP Paribas Securities Corp., SMBC Nikko Securities America Inc.
|
| Co-managers: | Barclays, HSBC Securities (USA) Inc., MUFG, RBS Securities Inc., TD Securities (USA) LLC, ANZ Securities, Inc., Citigroup Global Markets Inc., DNB Markets, Inc., Lloyds Securities Inc., Scotia Capital (USA) Inc., Morgan Stanley & Co. LLC, BBVA Securities Inc., Credit Agricole Securities (USA) Inc., Fifth Third Securities, Inc., PNC Capital Markets LLC, Santander Investment Securities Inc., Academy Securities, Inc., Blaylock Beal Van, LLC, Drexel Hamilton, LLC, Lebenthal & Co., LLC, Mischler Financial Group, Inc., Samuel A. Ramirez & Co., Inc., Siebert Brandford Shank & Co., LLC, Williams Capital Group, LP
|
| Coupon: | Libor plus 125.5 bps
|
| Price: | Par
|
| Yield: | Libor plus 125.5 bps
|
| Price talk: | Libor equivalent to five-year fixed-rate notes
|
|
|
| Seven-year notes
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| Amount: | $3 billion
|
| Maturity: | March 15, 2022
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| Additional bookrunners: | MUFG, BNP Paribas Securities Corp.
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| Co-managers: | Barclays, HSBC Securities (USA) Inc., RBS Securities Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, ANZ Securities, Inc., Citigroup Global Markets Inc., DNB Markets, Inc., Lloyds Securities Inc., Scotia Capital (USA) Inc., Morgan Stanley & Co. LLC, BBVA Securities Inc., Credit Agricole Securities (USA) Inc., Fifth Third Securities, Inc., PNC Capital Markets LLC, Santander Investment Securities Inc., Academy Securities, Inc., Blaylock Beal Van, LLC, Drexel Hamilton, LLC, Lebenthal & Co., LLC, Mischler Financial Group, Inc., Samuel A. Ramirez & Co., Inc., Siebert Brandford Shank & Co., LLC, Williams Capital Group, LP
|
| Coupon: | 3.45%
|
| Price: | 99.858
|
| Yield: | 3.473%
|
| Spread: | 155 bps over Treasuries
|
| Price talk: | 160 bps area over Treasuries, tightened from 180 bps to 185 bps
|
| Make-whole call: | 25 bps prior to Jan. 15, 2020, then callable at par
|
|
|
| 10-year notes
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| Amount: | $4 billion
|
| Maturity: | March 15, 2025
|
| Additional bookrunners: | HSBC Securities (USA) Inc., Barclays
|
| Co-managers: | BNP Paribas Securities Corp., MUFG, RBS Securities Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, ANZ Securities, Inc., Citigroup Global Markets Inc., DNB Markets, Inc., Lloyds Securities Inc., Scotia Capital (USA) Inc., Morgan Stanley & Co. LLC, BBVA Securities Inc., Credit Agricole Securities (USA) Inc., Fifth Third Securities, Inc., PNC Capital Markets LLC, Santander Investment Securities Inc., Academy Securities, Inc., Blaylock Beal Van, LLC, Drexel Hamilton, LLC, Lebenthal & Co., LLC, Mischler Financial Group, Inc., Samuel A. Ramirez & Co., Inc., Siebert Brandford Shank & Co., LLC, Williams Capital Group, LP
|
| Coupon: | 3.8%
|
| Price: | 99.645
|
| Yield: | 3.843%
|
| Spread: | 175 bps over Treasuries
|
| Price talk: | 180 bps area over Treasuries, tightened from 200 bps area
|
| Make-whole call: | 30 bps prior to Dec. 15, 2024, then callable at par
|
|
|
| 20-year bonds
|
| Amount: | $2.5 billion
|
| Maturity: | March 15, 2035
|
| Additional bookrunners: | TD Securities (USA) LLC, Barclays
|
| Co-managers: | BNP Paribas Securities Corp., HSBC Securities (USA) Inc., MUFG, RBS Securities Inc., SMBC Nikko Securities America, Inc., ANZ Securities, Inc., Citigroup Global Markets Inc., DNB Markets, Inc., Lloyds Securities Inc., Scotia Capital (USA) Inc., Morgan Stanley & Co. LLC, BBVA Securities Inc., Credit Agricole Securities (USA) Inc., Fifth Third Securities, Inc., PNC Capital Markets LLC, Santander Investment Securities Inc., Academy Securities, Inc., Blaylock Beal Van, LLC, Drexel Hamilton, LLC, Lebenthal & Co., LLC, Mischler Financial Group, Inc., Samuel A. Ramirez & Co., Inc., Siebert Brandford Shank & Co., LLC, Williams Capital Group, LP
|
| Coupon: | 4.55%
|
| Price: | 99.57
|
| Yield: | 4.583%
|
| Spread: | 190 bps over Treasuries
|
| Price talk: | 195 bps area over Treasuries, tightened from 220 bps area
|
| Make-whole call: | 30 bps prior to Sept. 15, 2034, then callable at par
|
|
|
| 30-year bonds
|
| Amount: | $2.5 billion
|
| Maturity: | March 15, 2045
|
| Additional bookrunners: | HSBC Securities (USA) Inc., MUFG
|
| Co-managers: | Barclays, BNP Paribas Securities Corp., RBS Securities Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, ANZ Securities, Inc., Citigroup Global Markets Inc., DNB Markets, Inc., Lloyds Securities Inc., Scotia Capital (USA) Inc., Morgan Stanley & Co. LLC, BBVA Securities Inc., Credit Agricole Securities (USA) Inc., Fifth Third Securities, Inc., PNC Capital Markets LLC, Santander Investment Securities Inc., Academy Securities, Inc., Blaylock Beal Van, LLC, Drexel Hamilton, LLC, Lebenthal & Co., LLC, Mischler Financial Group, Inc., Samuel A. Ramirez & Co., Inc., Siebert Brandford Shank & Co., LLC, Williams Capital Group, LP
|
| Coupon: | 4.75%
|
| Price: | 99.477
|
| Yield: | 4.783%
|
| Spread: | 210 bps over Treasuries
|
| Price talk: | 215 bps area over Treasuries, tightened from 240 bps area
|
| Make-whole call: | 35 bps prior to Sept. 15, 2044, then callable at par
|
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