By Devika Patel
Knoxville, Tenn., April 28 – Biogen Inc. offered further details about a $3 billion sale of senior notes (Baa1/A-) that priced in two tranches on Monday following fixed income investor calls held Friday, according to an FWP filed with the Securities and Exchange Commission.
The company sold $1.5 billion of 2.25% 10-year notes at a spread of 160 basis points over Treasuries. These notes priced at 99.973 to yield 2.253%.
Initial price talk was in the 195 bps over Treasuries area.
A $1.5 billion tranche of 3.15% 30-year notes priced at 195 bps over Treasuries. These notes priced at 99.174 to yield 3.193%.
The 30-year notes were talked at the 225 bps spread area.
BofA Securities, Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC were the active bookrunners for both tranches.
Proceeds will be used to repurchase stock, for working capital and for general corporate purposes.
The biotechnology company is based in Cambridge, Mass.
| Issuer: | Biogen Inc.
|
| Amount: | $3 billion
|
| Description: | Notes
|
| Bookrunners: | BofA Securities, Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC (active)
|
| Senior co-managers: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Mizuho Securities USA Inc. and U.S. Bancorp Investments Inc.
|
| Co-managers: | Wells Fargo Securities LLC, Academy Securities, Inc. and Loop Capital Markets LLC
|
| Put: | Change-of-control put at 101
|
| Trade date: | April 27
|
| Settlement date: | April 30
|
| Ratings: | Moody’s: Baa1
|
| S&P: A-
|
| Distribution: | SEC registered
|
| Marketing: | Fixed income investor calls
|
|
|
| 10-year notes
|
| Amount: | $1.5 billion
|
| Bookrunners: | Morgan Stanley & Co. LLC, Citigroup Global Markets Inc. and Mizuho Securities USA Inc. (passive)
|
| Maturity: | May 1, 2030
|
| Coupon: | 2.25%
|
| Price: | 99.973
|
| Yield: | 2.253%
|
| Spread: | Treasuries plus 160 bps
|
| Call: | Make-whole call at Treasuries plus 25 bps until Feb. 1, 2030, then a par call
|
| Price guidance: | Treasuries plus 195 bps area
|
|
|
| 30-year notes
|
| Amount: | $1.5 billion
|
| Bookrunners: | Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc. and U.S. Bancorp Investments Inc. (passive)
|
| Maturity: | May 1, 2050
|
| Coupon: | 3.15%
|
| Price: | 99.174
|
| Yield: | 3.193%
|
| Spread: | Treasuries plus 195 bps
|
| Call: | Make-whole call at Treasuries plus 30 bps until Nov. 1, 2049, then a par call
|
| Price guidance: | Treasuries plus 225 bps area
|
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