By Ronda Fears
Memphis, Tenn., May 10 - Abbott Laboratories (A1/AA) priced a three-part $4 billion bond deal Tuesday via joint bookrunners ABN Amro Securities, Morgan Stanley, Banc of America Securities and JPMorgan Securities.
The three-year tranche, for $500 million, priced with a coupon of 5.375% at 99.75 to yield 5.466%, or a spread of 48 basis points over Treasuries.
The five-year tranche, for $1.5 billion, priced with a coupon of 5.6% at 99.935 to yield 5.615%, or a spread of 60 bps over Treasuries.
The 10-year tranche, for $2 billion, priced with a coupon of 5.875% at 99.91 to yield 5.887%, or a spread of 76 bps over Treasuries.
Abbott Park, Ill.-based Abbott Labs plans to use proceeds to repay commercial paper debt incurred to make a $900 million loan to Boston Scientific Corp. and to make an equity investment of $1.4 billion in Boston Scientific, plus help fund its $4.1 billion acquisition of Guidant Corp.'s vascular intervention and endovascular solutions businesses.
| Issuer: | Abbott Laboratories
|
| Issue: | Global bonds
|
| Amount: | $4 billion
|
| Pricing date: | May 9
|
| Settlement date: | May 12
|
| Bookrunners: | ABN Amro Securities, Morgan Stanley, Banc of America Securities and JPMorgan Securities.
|
|
|
| Tranche A
|
| Amount: | $500 million
|
| Maturity: | May 15, 2009
|
| Coupon: | 5.375%
|
| Price: | 99.75
|
| Yield: | 5.466%
|
| Spread: | 48 bps over comparable Treasuries
|
| Price talk: | 48 bps over comparable Treasuries
|
| Call: | Make-whole at Treasuries plus 10 bps
|
| Ratings: | Moody's: A1
|
| S&P: AA
|
|
|
| Tranche B
|
| Amount: | $1.5 billion
|
| Maturity: | May 15, 2011
|
| Coupon: | 5.6%
|
| Price: | 99.935
|
| Yield: | 5.615%
|
| Spread: | 60 bps over comparable Treasuries
|
| Price talk: | 60 bps over comparable Treasuries
|
| Call: | Make-whole at Treasuries plus 12.5 bps
|
| Ratings: | Moody's: A1
|
| S&P: AA
|
|
|
| Tranche C
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| Amount: | $2 billion
|
| Maturity: | May 15, 2016
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| Coupon: | 5.875%
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| Price: | 99.91
|
| Yield: | 5.887%
|
| Spread: | 76 bps over comparable Treasuries
|
| Price talk: | 76 bps over comparable Treasuries
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Ratings: | Moody's: A1
|
| S&P: AA
|
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