New Issue: Zoetis sells $1.35 billion of senior notes in tranches due 2025, 2032

By Wendy Van Sickle

Columbus, Ohio, Nov. 8 – Zoetis Inc. priced a $1.35 billion offering of senior notes (Baa1/BBB) in two parts on Tuesday, according to an FWP filed with the Securities and Exchange Commission.

Thursday’s sale included a $600 million tranche of 5.4% 10-year senior notes, which priced at 99.927 to yield 5.427%, or Treasuries plus 85 basis points.

The transaction also included a $750 million issue of 5.6% 10-year senior notes, which priced at 99.841 to yield 5.621%, or 150 bps over Treasuries.

Barclays, BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG, BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and TD Securities (USA) LLC are the joint bookrunning managers.

The notes will be putable at 101 upon a change of control.

The company intends to use proceeds from the new notes to repay the principal of its 3.25% senior notes due 2023 totaling $1.35 billion and the remainder, if any, for general corporate purposes.

Zoetis is an animal medicine and vaccine company based in Parsippany, N.J.

Issuer:	Zoetis Inc.
Amount:	$1.35 billion
Issue:	Senior notes
Bookrunners:	Barclays, BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG Securities Americas Inc., BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Rabo Securities USA, Inc., Standard Chartered Bank and TD Securities (USA) LLC
Senior co-manager:	Loop Capital Markets LLC
Co-managers:	Academy Securities, Inc., R. Seelaus & Co., LLC and Samuel A. Ramirez & Co., Inc.
Trustee:	Deutsche Bank Trust Co. Americas
Counsel to issuer:	Cooley LLP
Counsel to underwriters:	Davis Polk & Wardwell LLP
Change-of-control put:	101%
Trade date:	Nov. 8
Settlement date:	Nov. 16
Ratings:	Moody’s: Baa1
	S&P: BBB
Distribution:	SEC registered
2025 notes
Amount:	$600 million
Maturity:	Nov. 14, 2025
Coupon:	5.4%
Price:	99.927
Yield:	5.427%
Spread:	Treasuries plus 85 bps
Make-whole call:	Treasuries plus 15 bps prior to Oct. 14, 2025, then callable at par
Cusip:	98978VAU7
2032 notes
Amount:	$750 million
Maturity:	Nov. 16, 2032
Coupon:	5.6%
Price:	99.841
Yield:	5.621%
Spread:	Treasuries plus 150 bps
Make-whole call:	Treasuries plus 25 bps prior to Aug. 16, 2032, then callable at par
Cusip:	98978VAV5

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