By Cristal Cody
Tupelo, Miss., Feb. 18 – Amgen Inc. priced $5 billion of senior notes (Baa1/A-) in five tranches on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
A $500 million tranche of 1.9% five-year notes priced at 99.796 to yield 1.943%, or a spread of Treasuries plus 55 basis points.
The five-year notes were talked to price with a spread in the Treasuries plus 75 bps to 80 bps area.
Amgen priced $750 million of 2.2% seven-year notes at 99.787 to yield 2.233% and a spread of 75 bps over Treasuries.
Initial price talk on the seven-year tranche was in the Treasuries plus 90 bps to 95 bps area
The company sold $1.25 billion of 2.45% 10-year notes at 99.965 to yield 2.454%, or a 90 bps over Treasuries spread.
The 10-year notes were talked to print with a spread in the Treasuries plus 105 bps to 110 bps area.
A $1.25 billion tranche of 3.15% 20-year notes priced at 99.603 to yield 3.177%, or Treasuries plus 117 bps, compared to initial talk in the 135 bps to 140 bps over Treasuries area.
In the final tranche, the company sold $1.25 billion of 3.375% 30-year notes at 99.962 to yield 3.377% and a 137 bps over Treasuries spread.
The 30-year notes were talked to print at the Treasuries plus 155 bps to 160 bps area.
Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Barclays, Morgan Stanley & Co. LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, HSBC Securities (USA) Inc. and Mizuho Securities USA LLC were the bookrunners.
Proceeds will be used to redeem in full the company’s $900 million 3.45% senior notes due Oct. 1, 2020, its $1 billion 4.1% senior notes due June 15, 2021 and its $750 million 1.85% senior notes due Aug. 19, 2021 and to redeem some of its $1.75 billion 3.875% senior notes due Nov. 15, 2021.
Amgen is a Thousand Oaks, Calif., manufacturer and marketer of human therapeutics based upon advances in cellular and molecular biology.
| Issuer: | Amgen Inc.
|
| Amount: | $5 billion
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Barclays, Morgan Stanley & Co. LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, HSBC Securities (USA) Inc. and Mizuho Securities USA LLC
|
| Co-managers: | BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., MUFG, RBC Capital Markets, LLC, Sumitomo Mitsui Financial Group, Inc., Wells Fargo Securities, LLC and Samuel A. Ramirez & Co., Inc.
|
| Trade date: | Feb. 18
|
| Settlement date: | Feb. 21
|
| Ratings: | Moody’s: Baa1
|
| S&P: A-
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
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| Amount: | $500 million
|
| Maturity: | Feb. 21, 2025
|
| Coupon: | 1.9%
|
| Price: | 99.796
|
| Yield: | 1.943%
|
| Spread: | Treasuries plus 55 bps
|
| Call features: | Make-whole call at Treasuries plus 10 bps before Jan. 21, 2025; thereafter at par
|
| Price guidance: | Treasuries plus 75 bps-80 bps area
|
|
|
| Seven-year notes
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| Amount: | $750 million
|
| Maturity: | Feb. 21, 2027
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| Coupon: | 2.2%
|
| Price: | 99.787
|
| Yield: | 2.233%
|
| Spread: | Treasuries plus 75 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps before Dec. 21, 2026; thereafter at par
|
| Price guidance: | Treasuries plus 90 bps-95 bps area
|
|
|
| 10-year notes
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| Amount: | $1.25 billion
|
| Maturity: | Feb. 21, 2030
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| Coupon: | 2.45%
|
| Price: | 99.965
|
| Yield: | 2.454%
|
| Spread: | Treasuries plus 90 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps before Nov. 21, 2029; thereafter at par
|
| Price guidance: | Treasuries plus 105 bps-110 bps area
|
|
|
| 20-year notes
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| Amount: | $1.25 billion
|
| Maturity: | Feb. 21, 2040
|
| Coupon: | 3.15%
|
| Price: | 99.603
|
| Yield: | 3.177%
|
| Spread: | Treasuries plus 117 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps before Aug. 21, 2039; thereafter at par
|
| Price guidance: | Treasuries plus 135 bps-140 bps area
|
|
|
| 30-year notes
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| Amount: | $1.25 billion
|
| Maturity: | Feb. 21, 2050
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| Coupon: | 3.375%
|
| Price: | 99.962
|
| Yield: | 3.377%
|
| Spread: | Treasuries plus 137 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps before Aug. 21, 2049; thereafter at par
|
| Price guidance: | Treasuries plus 155 bps-160 bps area
|
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