By Susanna Moon
Chicago, Nov. 9 - Abbott Laboratories said it extended the tender offers for any and all of four series of notes to 11:59 p.m. ET on Nov. 9 from 5 p.m. ET on Nov. 8 and also announced the early tender results to repurchase some of five series of notes.
The notes covered by the offers and their payouts are listed in the table below.
As of Nov. 8, in the offer for the five series of notes, investors had tendered $807.6 million of the 5.125% notes due 2019, $402.2 million of the 4.125% notes due 2020, $452.6 million of the 6.15% notes due 2037, $485.0 million of the 6% notes due 2039 and $555.6 million of the 5.3% notes due 2040.
Given the tender cap for each series of notes in that offer, Abbott expects to accept for purchase $380.7 million of the 5.125% notes, $189.6 million of the 4.125% notes, $213.5 million of the 6.15% notes, $235.1 million of the 6% notes and $262.1 million of the 5.3% notes on a pro rata basis, according to a company press release.
The amount accepted represents 48.5% of the 6% notes and 47.2% of each of the remaining series.
Abbott said it increased the tender cap for the 6% notes to $485.0 million from $472.0 million.
Holders may continue to tender their notes under the partial tender offers until 11:59 p.m. ET on Nov. 26.
Those participating in the partial offer had to tender by the close on Nov. 8 in order to receive the total purchase price for that offer, which included a $30.00 per $1,000 of notes early tender payment.
Update for any and all notes
As of 5 p.m. ET on Nov. 8, holders had tendered $157.8 million of the 4.35% notes due 2014, $379.1 million of the 2.7% notes due 2015, $811.0 million of the 5.875% notes due 2016 and $624.1 million of the 5.6% notes due 2017.
The company said it expects to pay for the notes on Nov. 13.
Pricing for the offers was announced on Nov. 8.
The company will also pay accrued interest to the settlement date, which is Nov. 9 for the partial offer notes tendered by the early tender date and Nov. 13 for notes tendered in the any and all offers.
There is no minimum tender condition, but the offers are conditioned on financing from the planned issue of AbbVie notes.
Abbott said it will call for redemption all of the notes in the any and all offer that remain outstanding following completion of the tender.
The company previously said that it planned to fund a portion of the tender payment with some of the dividends it expects to receive from wholly owned subsidiary AbbVie Inc. In turn, AbbVie expects to launch an offering of debt securities to finance the dividend.
AbbVie priced $14.7 billion of notes in six tranches on Nov. 5 to help fund its split from Abbott Laboratories as well as the $7.7 billion tender offer related to the spinoff, as previously reported by Prospect News. The size was increased from $10.0 billion in five tranches.
The lead dealer managers are Morgan Stanley & Co. LLC (800 624-1808 or call collect 212 761-1057), Barclays (800 438-3242 or call collect 212 528-7581), Bank of America Merrill Lynch (888 292-0070 or call collect 980 683-3215) and J.P. Morgan Securities LLC (866 834-4666 or call collect 212 834-2494).
Georgeson Inc. is the information agent (212 440-9800 for banks and brokers or 800 509-0984).
The pharmaceutical health care products company is based in Abbott Park, Ill. It launched the offers on Oct. 26.
Any and all offers
| Notes | Outstanding | Reference note | Fixed spread | Consideration
|
| 4.35% notes due 2014 | $500 million | 1.25% due 3/15/14 | 10 bps | $1,053.60
|
| 2.7% notes due 2015 | $750 million | 0.25% due 5/15/15 | 10 bps | $1,057.81
|
| 5.875% notes due 2016 | $2 billion | 5.125% due 5/15/16 | 15 bps | $1,183.48
|
| 5.6% notes due 2017 | $1.5 billion | 2.25% due 11/30/17 | 25 bps | $1,230.90
|
|
|
| Partial offers
|
| Notes | Outstanding | Cap | Reference note | Spread | Consideration
|
| 5.125% notes due 2019 | $2 billion | $944 million | 1.5% due 3/31/19 | 35 bps | $1,235.55
|
| 4.125% notes due 2020 | $1 billion | $472 million | 3.5% due 5/15/20 | 15 bps | $1,204.76
|
| 6.15% notes due 2037 | $1 billion | $472 million | 3.0% due 5/15/42 | 49 bps | $1,496.05
|
| 6% notes due 2039 | $1 billion | $472 million | 3.0% due 5/15/42 | 43 bps | $1,500.42
|
| 5.3% notes due 2040 | $1.25 billion | $590 million | 3.0% due 5/15/42 | 45 bps | $1,381.88
|
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