By Aleesia Forni
Virginia Beach, Nov. 9 – Zoetis Inc. was in Monday’s market with a $1.25 billion offering of senior notes in two tranches, according to a market source.
The sale (Baa2/BBB-) included a $500 million tranche of 3.45% five-year notes that sold at 173 basis points over Treasuries.
Guidance was in the 175 bps area over Treasuries following the 195 bps area over Treasuries talk.
Also, a $750 million piece of 4.5% 10-year bonds priced at 218 bps over Treasuries.
The issue came at the tight end of the Treasuries plus 220 bps area guidance and tighter than initial talk set in the Treasuries plus 240 bps area.
BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the bookrunners.
Proceeds will be used to repay amounts drawn under a revolving credit facility to fund the $765 million purchase price of Salar Topco AS, to repay $400 million of 1.15% senior notes due 2016 and for general corporate purposes.
Zoetis is an animal health subsidiary of Pfizer Inc., based in New York City.
| Issuer: | Zoetis Inc.
|
| Issue: | Senior notes
|
| Amount: | $1.25 billion
|
| Bookrunners: | BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC
|
| Trade date: | Nov. 9
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB-
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Nov. 13, 2020
|
| Coupon: | 3.45%
|
| Spread: | Treasuries plus 173 bps
|
| Price guidance: | Treasuries plus 175 bps area, tightened from Treasuries plus 195 bps area
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | Nov. 30, 2025
|
| Coupon: | 4.5%
|
| Spread: | Treasuries plus 218 bps
|
| Price guidance: | Treasuries plus 220 bps area, tightened from Treasuries plus 240 bps area
|
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