By Cristal Cody
Chicago, Nov. 17 – Baxter International Inc. sold $7.8 billion of senior notes in eight parts (Baa2/A-/A-) on Monday to help finance its $10.4 billion acquisition of Hill-Rom Holdings, Inc., according to a market source.
The first four parts of the offer are fixed-rate and floating-rate pairs. The issuance included:
• $300 million of floating-rate notes due Dec. 1, 2023 priced with a coupon based on SOFR plus a 26 basis points;
• $800 million of 0.868% notes with the same Dec. 1, 2023 maturity date, priced with a Treasuries plus 35 bps spread, lower than talk in the Treasuries plus 50 bps area;
• $300 million of floating-rate notes due Nov. 29, 2024 priced with a SOFR plus 44 bps coupon;
• $1.4 billion 1.322% notes also with a Nov. 29, 2024 maturity date, priced with a Treasuries plus 45 bps spread after talk in the 60 bps area over Treasuries.
The other four series are fixed-rate tranches:
• $1.45 billion of 1.915% notes due Feb. 1, 2027, priced at Treasuries plus 65 bps versus talk in the Treasuries plus 80 bps area;
• $1.25 billion of 2.275% notes due Dec. 1, 2028, priced at Treasuries plus 75 bps after being expected in the Treasuries plus 95 bps area;
• $1.55 billion of 2.539% notes due Feb. 1, 2032, with pricing of 90 bps over Treasuries and 20 bps low of talk for a spread in the 110 bps area over Treasuries; and
• $750 million of 3.312% notes due Dec. 1, 2051, priced at Treasuries plus 110 bps and also 20 bps low to talk for a spread in the Treasuries plus 130 bps area.
Citigroup Global Markets Inc. and J.P. Morgan Securities LLC led the Rule 144A and Regulation S sale.
Baxter is a Deerfield, Ill.-based medical products company. Hill-Rom is a Chicago-based medical technology company.
| Issuer: | Baxter International Inc.
|
| Issue: | Senior notes
|
| Amount: | $7.8 billion
|
| Bookrunners: | Citigroup Global Markets Inc. and J.P. Morgan Securities LLC
|
| Trade date: | Nov. 16
|
| Ratings: | Moody’s: Baa2
|
| S&P: A-
|
| Fitch: A-
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| 2023 floaters
|
| Amount: | $300 million
|
| Issue: | Floating-rate senior notes
|
| Maturity: | Dec. 1, 2023
|
| Coupon: | SOFR plus 26 bps
|
|
|
| Fixed 2023
|
| Amount: | $800 million
|
| Issue: | Senior notes
|
| Maturity: | Dec. 1, 2023
|
| Coupon: | 0.868%
|
| Spread: | Treasuries plus 35 bps
|
| Price talk: | Treasuries plus 50 bps area
|
|
|
| 2024 floaters
|
| Amount: | $300 million
|
| Issue: | Floating-rate senior notes
|
| Maturity: | Nov. 29, 2024
|
| Coupon: | SOFR plus 44 bps
|
|
|
| Fixed 2024
|
| Amount: | $1.4 billion
|
| Issue: | Senior notes
|
| Maturity: | Nov. 29, 2024
|
| Coupon: | 1.322%
|
| Spread: | Treasuries plus 45 bps
|
| Price talk: | Treasuries plus 60 bps area
|
|
|
| 2027 notes
|
| Amount: | $1.45 billion
|
| Issue: | Senior notes
|
| Maturity: | Feb. 1, 2027
|
| Coupon: | 1.915%
|
| Spread: | Treasuries plus 65 bps
|
| Price talk: | Treasuries plus 80 bps area
|
|
|
| 2028 notes
|
| Amount: | $1.25 billion
|
| Issue: | Senior notes
|
| Maturity: | Dec. 1, 2028
|
| Coupon: | 2.272%
|
| Spread: | Treasuries plus 75 bps
|
| Price talk: | Treasuries plus 95 bps area
|
|
|
| 2032 notes
|
| Amount: | $1.55 billion
|
| Issue: | Senior notes
|
| Maturity: | Feb. 1, 2032
|
| Coupon: | 2.539%
|
| Spread: | Treasuries plus 90 bps
|
| Price talk: | Treasuries plus 110 bps area
|
|
|
| 2051 notes
|
| Amount: | $750 million
|
| Issue: | Senior notes
|
| Maturity: | Dec. 1, 2051
|
| Coupon: | 3.132%
|
| Spread: | Treasuries plus 110 bps
|
| Price talk: | Treasuries plus 130 bps area
|
|
|
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