Published on 3/5/2015 in the Prospect News Investment Grade Daily.
New Issue: Abbott Laboratories prices $2.5 billion of notes in three maturities
By Aleesia Forni
Virginia Beach, March 5 – Abbott Laboratories sold a combined $2.5 billion of senior notes (A2/A+/) in three maturities on Thursday, according to an informed source and an FWP filed with the Securities and Exchange Commission.
The issuance included a $750 million tranche of 2% five-year notes sold at 99.81 to yield 2.04%, or Treasuries plus 48 bps.
The notes sold at the tight end of guidance after having firmed from initial talk in the 60 bps area over Treasuries.
The bookrunners were Barclays, BofA Merrill Lynch, J.P. Morgan Securities LLC, BNP Paribas Securities Corp. and Morgan Stanley & Co. LLC.
There was also $750 million of 2.55% notes due 2022 sold at 99.834 to yield 2.576%, or 68 bps over Treasuries.
Pricing was at the tight end of the 70 bps area over Treasuries guidance, tightened from initial talk in the 80 bps area over Treasuries.
The bookrunners were Barclays, BofA Merrill Lynch, JPMorgan, Morgan Stanley and SG Americas Securities LLC.
Finally, a $1 billion tranche of 2.95% 10-year notes sold at 99.793 to yield 2.974%.
The notes sold with a spread of Treasuries plus 88 bps.
Pricing was at the tight end of guidance set in the Treasuries plus 90 bps area. Initial talk was set in the Treasuries plus 100 bps area.
The bookrunners for the 10-year tranche were Barclays, BofA Merrill Lynch, JPMorgan, Morgan Stanley and Deutsche Bank Securities Inc.
Proceeds will be used for general corporate purposes.
The pharmaceutical health care products company is based in Abbott Park, Ill.
| Issuer: | Abbott Laboratories
|
| Issue: | Senior notes
|
| Amount: | $2.5 billion
|
| Trade date: | March 5
|
| Settlement date: | March 10
|
| Ratings: | Moody’s: A2
|
| Standard & Poor’s: A+
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | March 15, 2020
|
| Bookrunners: | Barclays, BofA Merrill Lynch, J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Morgan Stanley & Co. LLC
|
| Senior co-managers: | Deutsche Bank Securities Inc., SG Americas Securities, LLC, MUFG, RBS Securities Inc.
|
| Co-managers: | HSBC Securities (USA) Inc., Standard Chartered Bank, Santander Investment Securities Inc., Goldman Sachs & Co., Williams Capital Group, LP, BBVA Securities Inc., ING Financial Markets LLC, Mizuho Securities USA Inc., RBC Capital Markets, LLC, U.S. Bancorp Investments, Inc., Banca IMI SpA
|
| Coupon: | 2%
|
| Price: | 99.81
|
| Yield: | 2.04%
|
| Spread: | 48 bps over Treasuries
|
| Price talk: | 50 bps area, tightened from 60 bps area
|
| Make-whole call: | Treasuries plus 10 bps
|
|
|
| Seven-year notes
|
| Amount: | $750 million
|
| Maturity: | March 15, 2022
|
| Bookrunners: | Barclays, BofA Merrill Lynch, JPMorgan, Morgan Stanley, SG Americas Securities
|
| Senior co-managers: | BNP Paribas, Deutsche Bank, MUFG, RBS Securities
|
| Co-managers: | HSBC Securities, Standard Chartered Bank, Santander Investment Securities, Goldman Sachs, Williams Capital Group, BBVA Securities, ING Financial Markets, Mizuho Securities, RBC Capital Markets, USBancorp, Banca IMI
|
| Coupon: | 2.55%
|
| Price: | 99.834
|
| Yield: | 2.576%
|
| Spread: | 68 bps over Treasuries
|
| Price talk: | 70 bps area, tightened from 80 bps area
|
| Make-whole call: | Treasuries plus 12.5 bps
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | March 15, 2025
|
| Bookrunners: | Barclays, BofA Merrill Lynch, JPMorgan, Morgan Stanley, Deutsche Bank
|
| Senior co-managers: | BNP Paribas, SG Americas Securities, MUFG, RBS Securities
|
| Co-managers: | HSBC Securities, Standard Chartered Bank, Santander Investment Securities, Goldman Sachs, Williams Capital Group, BBVA Securities, ING Financial Markets, Mizuho Securities, RBC Capital Markets, USBancorp, Banca IMI
|
| Coupon: | 2.95%
|
| Price: | 99.793
|
| Yield: | 2.974%
|
| Spread: | 88 bps over Treasuries
|
| Price talk: | 90 bps area, tightened from 100 bps area
|
| Make-whole call: | Treasuries plus 15 bps prior to Dec. 15, 2024, then callable at par
|
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