New Issue: AbbVie gives details on $6 billion four-tranche issue of senior notes

By Devika Patel

Knoxville, Tenn., Sept. 14 – AbbVie Inc. offered further details about a $6 billion sale of fixed-rate senior notes (Baa2/A-) that priced in four parts on Thursday, according to an FWP filed with the Securities and Exchange Commission.

A $1.25 billion offering of 3.375% three-year notes priced at a spread of 60 basis points over Treasuries. These notes priced at 99.828 to yield 3.431%.

AbbVie sold $1.25 billion of 3.75% five-year notes with a Treasuries plus 90 bps spread. These notes priced at 99.872 to yield 3.776%.

The $1.75 billion of 4.25% 10-year notes were placed at a 138 bps spread over Treasuries. These notes priced at 99.145 to yield 4.354%.

Also, $1.75 billion of 4.875% 30-year bonds priced at a spread of 183 bps over Treasuries. These notes priced at 98.943 to yield 4.942%.

BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BNP Paribas Securities Corp., Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. and HSBC Securities (USA) Inc. were the bookrunners.

Proceeds will be used to redeem or repay at maturity all of the company’s $1 billion of 2% senior notes due Nov. 6, 2018, to prepay or repay at maturity its $2 billion term loan facility and for general corporate purposes.

AbbVie is a biopharmaceutical company based in North Chicago, Ill.

Issuer:	AbbVie Inc.
Amount:	$6 billion
Description:	Senior notes
Bookrunners:	BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BNP Paribas Securities Corp., Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. and HSBC Securities (USA) Inc.
Co-managers:	Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co., HSBC Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Mizuho Securities USA Inc., MUFG, RBC Capital Markets Corp., Santander Investment Securities Inc., SG Americas Securities LLC, Wells Fargo Securities LLC, DnB NOR Markets Inc., Lloyds Securities Inc. and Williams Capital Group LP
Trade date:	Sept. 13
Settlement date:	Sept. 18
Ratings:	Moody’s: Baa2
	S&P: A-
Distribution:	SEC registered
Three-year notes
Amount:	$1.25 billion
Maturity:	Nov. 14, 2021
Coupon:	3.375%
Price:	99.828
Yield:	3.431%
Spread:	Treasuries plus 60 bps
Call:	Make-whole call at Treasuries plus 10 bps
Price guidance:	Treasuries plus 65 bps area, plus or minus 5 bps; initial price talk at Treasuries plus 80 bps to 85 bps area
Five-year notes
Amount:	$1.25 billion
Maturity:	Nov. 14, 2023
Coupon:	3.75%
Price:	99.872
Yield:	3.776%
Spread:	Treasuries plus 90 bps
Call:	Make-whole call at Treasuries plus 15 bps until Oct. 14, 2023, then a par call
Price guidance:	Treasuries plus 95 bps area, plus or minus 5 bps; initial price talk at Treasuries plus 105 bps to 110 bps area
10-year notes
Amount:	$1.75 billion
Maturity:	Nov. 14, 2028
Coupon:	4.25%
Coupon:	4.875%
Price:	99.145
Yield:	4.354%
Spread:	Treasuries plus 138 bps
Call:	Make-whole call at Treasuries plus 25 bps until Aug. 14, 2028, then a par call
Price guidance:	Treasuries plus 140 bps area, plus or minus 2 bps; initial price talk at Treasuries plus 150 bps to 155 bps area
30-year notes
Amount:	$1.75 billion
Maturity:	Nov. 14, 2048
Coupon:	4.875%
Price:	98.943
Yield:	4.942%
Spread:	Treasuries plus 183 bps
Call:	Make-whole call at Treasuries plus 30 bps until May 14, 2048, then a par call
Price guidance:	Treasuries plus 185 bps area, plus or minus 2 bps; initial price talk at Treasuries plus 200 bps area

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