New Issue: Abbott Labs details $15.1 billion six-tranche sale of fixed-rate notes

By Devika Patel

Knoxville, Tenn., Nov. 18 – Abbott Laboratories offered further details about a $15.1 billion offering of fixed-rate senior notes (Baa3/A+) in an FWP filed with the Securities and Exchange Commission. The deal priced in six parts on Thursday.

The company sold $2.85 billion of 2.35% three-year notes at a spread of 105 basis points over Treasuries; the notes priced at 99.902 to yield 2.384%. These notes have a make-whole call at Treasuries plus 20 basis points.

A $2.85 billion tranche of 2.9% five-year notes priced with a 120 bps over Treasuries spread; the notes priced at 99.823 to yield 2.938%. These notes have a make-whole call at Treasuries plus 20 basis points until Oct. 30, 2021 and then a par call.

Abbott sold $1.5 billion of 3.4% seven-year notes at 140 bps over Treasuries; the notes priced at 99.529 to yield 3.476%. These notes have a make-whole call at Treasuries plus 25 basis points until Sept. 30, 2023 and then a par call.

In the 10-year tranche, the company priced $3 billion of 3.75% notes at a spread of 155 bps over Treasuries; the notes priced at 99.256 to yield 3.84%. These notes have a make-whole call at Treasuries plus 25 basis points until Aug. 30, 2026 and then a par call.

Abbott brought $1.65 billion of 4.75% 20-year notes with a spread of 175 bps over Treasuries; the notes priced at 99.36 to yield 4.8%. These notes have a make-whole call at Treasuries plus 30 basis points until May 30, 2036 and then a par call.

In the final tranche, the company sold $3.25 billion of 4.9% 30-year notes at a spread of Treasuries plus 190 bps; the notes priced at 99.221 to yield 4.95%. These notes have a make-whole call at Treasuries plus 30 basis points until May 30, 2046 and then a par call.

All of the tranches priced on the tight side of guidance.

Merrill Lynch, Pierce, Fenner & Smith Inc., Barclays and Morgan Stanley & Co. LLC were the bookrunners for all tranches. In addition, SG Americas Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., MUFG and BNP Paribas Securities Corp., were bookrunners for some tranches.

Proceeds will be used to help fund the cash portion of the Abbott Park, Ill., pharmaceutical health care products company’s planned $25 billion acquisition of St. Jude Medical, Inc. and for general corporate purposes.

Issuer:	Abbott Laboratories
Amount:	$15.1 billion
Description:	Senior notes
Trade date:	Nov. 17
Settlement date:	Nov. 22
Ratings:	Moody’s: Baa3
	S&P: A+
Distribution:	SEC registered
Three-year notes
Amount:	$2.85 billion
Maturity:	Nov. 22, 2019
Coupon:	2.35%
Price:	99.902
Yield:	2.384%
Spread:	Treasuries plus 105 bps
Price guidance:	Treasuries plus 110 bps area, plus or minus 5 bps
Call feature:	Make-whole call at Treasuries plus 20 bps
Bookrunners:	Merrill Lynch, Pierce, Fenner & Smith Inc., Barclays, Morgan Stanley & Co. LLC, SG Americas Securities LLC
Co-managers:	BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., MUFG, Santander Investment Securities Inc., HSBC Securities (USA) Inc., Standard Chartered Bank, Goldman Sachs & Co., BBVA Securities Inc., ING Financial Markets LLC, Mizuho Securities USA Inc., RBC Capital Markets Corp., U.S. Bancorp Investments Inc. and Williams Capital Group LP
Five-year notes
Amount:	$2.85 billion
Maturity:	Nov. 30, 2021
Coupon:	2.9%
Price:	99.823
Yield:	2.938%
Spread:	Treasuries plus 120 bps
Price guidance:	Treasuries plus 125 bps area, plus or minus 5 bps
Call feature:	Make-whole call at Treasuries plus 20 bps until Oct. 30, 2021, then a par call
Bookrunners:	Merrill Lynch, Pierce, Fenner & Smith Inc., Barclays, Morgan Stanley & Co. LLC, Citigroup Global Markets Inc.
Co-managers:	BNP Paribas Securities Corp., Deutsche Bank Securities Inc., SG Americas Securities LLC, MUFG, Santander Investment Securities Inc., HSBC Securities (USA) Inc., Standard Chartered Bank, Goldman Sachs & Co., BBVA Securities Inc., ING Financial Markets LLC, Mizuho Securities USA Inc., RBC Capital Markets Corp., U.S. Bancorp Investments Inc. and Williams Capital Group LP
Seven-year notes
Amount:	$1.5 billion
Maturity:	Nov. 30, 2023
Coupon:	3.4%
Price:	99.529
Yield:	3.476%
Spread:	Treasuries plus 140 bps
Price guidance:	Treasuries plus 145 bps area, plus or minus 5 bps
Call feature:	Make-whole call at Treasuries plus 25 bps until Sept. 30, 2023, then a par call
Bookrunners:	Merrill Lynch, Pierce, Fenner & Smith Inc., Barclays, Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc.
Co-managers:	BNP Paribas Securities Corp., Citigroup Global Markets Inc., SG Americas Securities LLC, MUFG, Santander Investment Securities Inc., HSBC Securities (USA) Inc., Standard Chartered Bank, Goldman Sachs & Co., BBVA Securities Inc., ING Financial Markets LLC, Mizuho Securities USA Inc., RBC Capital Markets Corp., U.S. Bancorp Investments Inc. and Williams Capital Group LP
10-year notes
Amount:	$3 billion
Maturity:	Nov. 30, 2026
Coupon:	3.75%
Price:	99.256
Yield:	3.84%
Spread:	Treasuries plus 155 bps
Price guidance:	Treasuries plus 160 bps area, plus or minus 5 bps
Call feature:	Make-whole call at Treasuries plus 25 bps until Aug. 30, 2026, then a par call
Bookrunners:	Merrill Lynch, Pierce, Fenner & Smith Inc., Barclays, Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc.
Co-managers:	BNP Paribas Securities Corp., Citigroup Global Markets Inc., SG Americas Securities LLC, MUFG, Santander Investment Securities Inc., HSBC Securities (USA) Inc., Standard Chartered Bank, Goldman Sachs & Co., BBVA Securities Inc., ING Financial Markets LLC, Mizuho Securities USA Inc., RBC Capital Markets Corp., U.S. Bancorp Investments Inc. and Williams Capital Group LP
20-year notes
Amount:	$1.65 billion
Maturity:	Nov. 30, 2036
Coupon:	4.75%
Price:	99.36
Yield:	4.8%
Spread:	Treasuries plus 175 bps
Price guidance:	Treasuries plus 180 bps area, plus or minus 5 bps
Call feature:	Make-whole call at Treasuries plus 30 bps until May 30, 2036, then a par call
Bookrunners:	Merrill Lynch, Pierce, Fenner & Smith Inc., Barclays, Morgan Stanley & Co. LLC, MUFG
Co-managers:	BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., SG Americas Securities LLC, Santander Investment Securities Inc., HSBC Securities (USA) Inc., Standard Chartered Bank, Goldman Sachs & Co., BBVA Securities Inc., ING Financial Markets LLC, Mizuho Securities USA Inc., RBC Capital Markets Corp., U.S. Bancorp Investments Inc. and Williams Capital Group LP
30-year notes
Amount:	$3.25 billion
Maturity:	Nov. 30, 2046
Coupon:	4.9%
Price:	99.221
Yield:	4.95%
Spread:	Treasuries plus 190 bps
Price guidance:	Treasuries plus 195 bps area, plus or minus 5 bps
Call feature:	Make-whole call at Treasuries plus 30 bps until May 30, 2046, then a par call
Bookrunners:	Merrill Lynch, Pierce, Fenner & Smith Inc., Barclays, Morgan Stanley & Co. LLC, BNP Paribas Securities Corp.
Co-managers:	Citigroup Global Markets Inc., Deutsche Bank Securities Inc., SG Americas Securities LLC, MUFG, Santander Investment Securities Inc., HSBC Securities (USA) Inc., Standard Chartered Bank, Goldman Sachs & Co., BBVA Securities Inc., ING Financial Markets LLC, Mizuho Securities USA Inc., RBC Capital Markets Corp., U.S. Bancorp Investments Inc. and Williams Capital Group LP

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.