By Rebecca Melvin
New York, May 5 – Amgen Inc. priced $4 billion of notes including new senior notes due 2031 and further issuances of its 2.2% senior notes due 2027, 3.15% senior notes due 2040 and 3.375% senior notes due 2050 (expected ratings: Baa1/A-), according to a pricing term sheet filed with the Securities and Exchange Commission.
The 2027 notes, 2040 notes and 2050 notes are add-ons to Amgen’s $750 million 2.2% notes due 2027, $1.25 billion 3.15% notes due 2040 and $1.25 billion 3.375% notes due 2050 issued on Feb. 21. The additional notes will form a single series with the existing notes.
The $1 billion tranche of 2.2% notes due 2027 priced at 101.049 to yield 2.03%, or a spread to Treasuries of plus 150 basis points.
The $1.25 billion tranche of 2.3% notes due 2031 priced at 99.642 to yield 2.337%, or a spread to Treasuries of 170 bps.
The $750 million tranche of 3.15% notes due 2040 priced at 101.608 to yield 3.039% or a spread to Treasuries of 175 bps.
And the $1 billion tranche of 3 3/8% notes due 2050 priced at 104.496 to yield 3.139% or a spread to Treasuries of 185 bps.
BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Barclays, Credit Suisse Securities (USA) LLC and Mizuho Securities USA LLC are joint bookrunning managers of the deal.
Proceeds will be used for general corporate purposes.
Amgen is a Thousand Oaks, Calif., manufacturer and marketer of human therapeutics based upon advances in cellular and molecular biology.
| Issuer: | Amgen Inc.
|
| Amount: | $4 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Barclays, Credit Suisse Securities (USA) LLC and Mizuho Securities USA LLC
|
| Co-managers: | Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., MUFG, BNP Paribas Securities Corp., MFR Securities Inc., RBC Capital Markets LLC, SMBC Nikko Securities America Inc. and Wells Fargo Securities LLC
|
| Trade date: | May 4
|
| Settlement date: | May 6
|
| Ratings: | Moody’s: Baa1
|
| S&P: A-
|
| Distribution: | SEC registered
|
|
|
| 2027 notes add-on
|
| Amount: | $1 billion
|
| Maturity: | Feb. 21, 2027
|
| Coupon: | 2.2%
|
| Price: | 101.049
|
| Yield: | 2.03%
|
| Spread: | Treasuries plus 150 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps before Dec. 21, 2026; thereafter at par
|
| Total issue size: | $1.75 billion
|
|
|
| 2031 notes
|
| Amount: | $1.25 million
|
| Maturity: | Feb. 25, 2027
|
| Coupon: | 2.3%
|
| Price: | 99.642
|
| Yield: | 2.337%
|
| Spread: | Treasuries plus 170 bps
|
| Call features: | Make-whole call at Treasuries plus 30 bps before Nov. 25, 2030; thereafter at par
|
|
|
| 2040 notes
|
| Amount: | $750 million
|
| Maturity: | Feb. 21, 2040
|
| Coupon: | 3.15%
|
| Price: | 101.642
|
| Yield: | 2.337%
|
| Spread: | Treasuries plus 170 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps before Aug. 21, 2039; thereafter at par
|
| Total issue size: | $2 billion
|
|
|
| 2050 notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 21, 2050
|
| Coupon: | 3 3/8%
|
| Price: | 104.496
|
| Yield: | 3.139%
|
| Spread: | Treasuries plus 185 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps before Aug. 21, 2039; thereafter at par
|
| Total issue size: | $2.25 billion
|
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