By Aleesia Forni
Virginia Beach, Oct. 1 – Bayer US Finance LLC priced $7 billion of senior notes (A3/A-/) in six tranches on Wednesday, a market source said.
The company’s sale included $500 million of two-year floaters priced at par to yield Libor plus 25 basis points.
There was also $400 million of floating-rate notes due 2017 priced at par to yield Libor plus 28 bps.
An $850 million tranche of 1.5% three-year notes priced at 99.933 to yield 1.523%, or Treasuries plus 55 bps.
Bayer also priced $2 billion of 2.375% five-year notes at 99.542 to yield 2.473%, or Treasuries plus 80 bps.
There was also $1.5 billion of 3% notes due 2021 priced at Treasuries plus 90 bps. The notes sold at 99.95 to yield 3.001%.
Finally, $1.75 billion of 3.375% 10-year notes sold at 99.011 to yield 3.493%, or Treasuries plus 110 bps.
All six tranches sold at the tight end of price talk.
A planned five-year tranche of floating-rate notes due 2019 was dropped prior to the deal’s launch.
Proceeds will be used to fund Bayer AG’s acquisition of Merck & Co Inc.’s consumer-care business.
The bookrunners for the Rule 144A and Regulation S deal were BofA Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC.
The German chemical and pharmaceutical company is based in Leverkusen.
| Issuer: | Bayer US Finance LLC
|
| Issue: | Senior notes
|
| Amount: | $7 billion
|
| Bookrunners: | BofA Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC
|
| Trade date: | Oct. 1
|
| Settlement date: | Oct. 8
|
| Ratings: | Moody’s: A3
|
| Standard & Poor’s: A-
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Two-year floaters
|
| Amount: | $500 million
|
| Maturity: | Oct. 7, 2016
|
| Coupon: | Libor plus 25 bps
|
| Price: | Par
|
| Yield: | Libor plus 25 bps
|
| Price talk: | Libor plus 30 bps area
|
|
|
| Three-year floaters
|
| Amount: | $400 million
|
| Maturity: | Oct. 6, 2017
|
| Coupon: | Libor plus 28 bps
|
| Price: | Par
|
| Yield: | Libor plus 28 bps
|
| Price talk: | Libor equivalent to three-year notes
|
|
|
| Three-year notes
|
| Amount: | $850 million
|
| Maturity: | Oct. 6, 2017
|
| Coupon: | 1.5%
|
| Price: | 99.933
|
| Yield: | 1.523%
|
| Spread: | Treasuries plus 55 bps
|
| Price talk: | Treasuries plus 60 bps area
|
|
|
| Five-year notes
|
| Amount: | $2 billion
|
| Maturity: | Oct. 8, 2019
|
| Coupon: | 2.375%
|
| Price: | 99.542
|
| Yield: | 2.473%
|
| Spread: | Treasuries plus 80 bps
|
| Price talk: | Treasuries plus 85 bps area
|
|
|
| Seven-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Oct. 8, 2021
|
| Coupon: | 3%
|
| Price: | 99.95
|
| Yield: | 3.001%
|
| Spread: | Treasuries plus 90 bps
|
| Price talk: | Treasuries plus 95 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | Oct. 8, 2024
|
| Coupon: | 3.375%
|
| Price: | 99.011
|
| Yield: | 3.493%
|
| Spread: | Treasuries plus 110 bps
|
| Price talk: | Treasuries plus 115 bps area
|
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