Published on 2/17/2015 in the Prospect News Investment Grade Daily.
New Issue: AmerisourceBergen sells $1 billion of 10-, 30-year senior notes
By Aleesia Forni
Virginia Beach, Feb. 17 – AmerisourceBergen Corp. priced $1 billion of senior notes (Baa2/A-/) in two tranches on Tuesday, according to a market source and an FWP filed with the Securities and Exchange Commission.
A $500 million tranche of 3.25% 10-year notes priced at 99.465 to yield 3.313%, or 117 basis points over Treasuries.
The notes sold at the tight end of revised price talk.
A second tranche was $500 million of 4.25% 30-year notes priced with a spread of Treasuries plus 152 bps. Pricing was at 99.813 to yield 4.261%.
The notes priced at the tight end of revised price talk.
Proceeds will be used to help fund the acquisition of MWI Veterinary Supply, Inc.
BofA Merrill Lynch and Wells Fargo Securities LLC are the joint bookrunners.
Based in Chesterbrook, Pa., AmerisourceBergen provides drug distribution and related services to pharmaceutical manufacturers in the United States and Canada.
| Issuer: | AmerisourceBergen Corp.
|
| Issue: | Senior notes
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| Amount: | $1 billion
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| Bookrunners: | BofA Merrill Lynch, Wells Fargo Securities LLC
|
| Co-managers: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets Inc., MUFG, Mizuho Securities USA Inc., PNC Capital Markets LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc.
|
| Trade date: | Feb. 17
|
| Settlement date: | Feb. 20
|
| Change-of-control put: | 101%
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: A-
|
| Distribution: | SEC registered
|
|
|
| Notes due 2025
|
| Amount: | $500 million
|
| Maturity: | March 1, 2025
|
| Coupon: | 3.25%
|
| Price: | 99.465
|
| Yield: | 3.313%
|
| Spread: | 117 bps
|
| Price talk: | 120 bps area, revised from talk set in the 130 bps area, tightened from guidance set in the 150 bps area
|
| Make-whole call: | 20 bps prior to Dec. 1, 2024, then callable at par
|
|
|
| Notes due 2045
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| Amount: | $500 million
|
| Maturity: | March 1, 2045
|
| Coupon: | 4.25%
|
| Price: | 99.813
|
| Yield: | 4.261%
|
| Spread: | 152 bps
|
| Price talk: | 155 bps area, revised from talk set in the 165 bps area, tightened from guidance set in the 185 bps area
|
| Make-whole call: | 25 bps prior to Sept. 1, 2044, then callable at par
|
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