Published on 11/29/2017 in the Prospect News Investment Grade Daily.
New Issue: AmerisourceBergen prices $1.25 billion of 10-, 30-year senior notes
By Cristal Cody
Tupelo, Miss., Nov. 29 – AmerisourceBergen Corp. priced $1.25 billion of senior notes (Baa2/A-/A-) in two tranches on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
The company sold $750 million of 3.45% 10-year notes at 99.755 to yield 3.479%, or a spread of 110 basis points over Treasuries.
AmerisourceBergen priced $500 million of 4.3% 30-year notes at 99.514 to yield 4.329%. The bonds priced with a Treasuries plus 150 bps spread.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC and BofA Merrill Lynch were the bookrunners.
Proceeds will be used to finance the company’s $815 million all-cash acquisition of H.D. Smith, LLC, to redeem all of its 4 7/8% senior notes due Nov. 15, 2019 and for general corporate purposes.
AmerisourceBergen is a Chesterbrook, Pa.-based pharmaceutical sourcing and distribution services company.
| Issuer: | AmerisourceBergen Corp.
|
| Amount: | $1.25 billion
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC and BofA Merrill Lynch
|
| Senior co-managers: | MUFG, Scotia Capital (USA) Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | Credit Suisse Securities (USA) LLC, Mizuho Securities USA LLC, PNC Capital Markets LLC, TD Securities (USA) LLC and KeyBanc Capital Markets Inc.
|
| Trade date: | Nov. 29
|
| Settlement date: | Dec. 4
|
| Ratings: | Moody’s: Baa2
|
| S&P: A-
|
| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | Dec. 15, 2027
|
| Coupon: | 3.45%
|
| Price: | 99.755
|
| Yield: | 3.479%
|
| Spread: | Treasuries plus 110 bps
|
| Change-of-control put: | 101%
|
| Call features: | Make-whole call at Treasuries plus 20 bps before Sept. 15, 2027; thereafter at par
|
|
|
| 30-year notes
|
| Amount: | $500 million
|
| Maturity: | Dec. 15, 2047
|
| Coupon: | 4.3%
|
| Price: | 99.514
|
| Yield: | 4.329%
|
| Spread: | Treasuries plus 150 bps
|
| Change-of-control put: | 101%
|
| Call features: | Make-whole call at Treasuries plus 25 bps before June 15, 2047; thereafter at par
|
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