By Cristal Cody
Tupelo, Miss., Aug. 14 – Elanco Animal Health Inc. (Baa3/BB+) priced a $2 billion offering of senior notes in three tranches on Tuesday, according to a market source.
The company sold $500 million of 3.912% three-year notes at a spread of Treasuries plus 120 basis points.
Elanco Animal Health priced $750 million of 4.272% five-year notes with a Treasuries plus 150 bps spread.
The $750 million tranche of 4.9% 10-year notes was sold with a spread of 200 bps over Treasuries.
The notes priced on the tight side of guidance.
Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC were the active bookrunners.
Proceeds from the offering will be used to fund the company’s spinoff from Eli Lilly & Co. and for general corporate purposes.
Elanco Animal Health is an animal health products company based in Greenfield, Ind.
| Issuer: | Elanco Animal Health Inc.
|
| Amount: | $2 billion
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC
|
| Trade date: | Aug. 14
|
| Ratings: | Moody’s: Baa3
|
| S&P: BB+
|
| Marketing: | Fixed income investor calls
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | Aug. 27, 2021
|
| Coupon: | 3.912%
|
| Spread: | Treasuries plus 120 bps
|
| Price guidance: | Treasuries plus 120 bps-130 bps area; initial price talk at Treasuries plus 162.5 bps-175 bps area
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | Aug. 28, 2023
|
| Coupon: | 4.272%
|
| Spread: | Treasuries plus 150 bps
|
| Price guidance: | Treasuries plus 150 bps-160 bps area; initial price talk at Treasuries plus 187.5 bps-200 bps area
|
|
|
| 10-year notes
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| Amount: | $750 million
|
| Maturity: | Aug. 28, 2028
|
| Coupon: | 4.9%
|
| Spread: | Treasuries plus 200 bps
|
| Price guidance: | Treasuries plus 200 bps-210 bps area; initial price talk at Treasuries plus 237.5 bps-250 bps area
|
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