By Andrea Heisinger
New York, June 27 - Amgen Inc. sold $3 billion of senior notes (A3/A+/A-) on Monday in three tranches, said a source close to the sale.
The $750 million of 2.3% five-year notes priced at 99.768 to yield 2.35% with a spread of Treasuries plus 90 basis points. The notes were talked in the 95 bps area and priced at the low end of that guidance.
The notes have a make-whole call at Treasuries plus 15 bps.
A second tranche was $1 billion of 4.1% 10-year notes priced at 99.742 to yield 4.132% with a spread of 120 bps over Treasuries. The notes priced at the tight end of guidance in the 125 bps area.
The tranche is callable at a make-whole amount of Treasuries plus 20 bps.
The company also priced $1.25 billion of 5.65% notes due 2042 at 99.51 to yield 5.684% with a spread of Treasuries plus 140 bps. This tranche was sold at the tight end of talk in the 145 bps area.
The bonds have a make-whole call at Treasuries plus 25 bps.
All of the tranches had a plus or minus 5 bps margin on price guidance.
The notes feature a change-of-control put at 101%.
Bookrunners were Bank of America Merrill Lynch, Barclays Capital Inc. and Morgan Stanley & Co., Inc.
Proceeds are being used for general corporate purposes, including working capital, capital expenditures, debt service requirements and to repay outstanding debt, for common stock share repurchase, payment of quarterly stock dividends, and other business initiatives, including acquisitions and licensing activities.
The global biotechnology company is based in Thousand Oaks, Calif.
| Issuer: | Amgen Inc.
|
| Issue: | Senior notes
|
| Amount: | $3 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Barclays Capital Inc., Morgan Stanley & Co., Inc.
|
| Change-of-control put: | 101%
|
| Trade date: | June 27
|
| Settlement date: | June 30
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A+
|
| Fitch: A-
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | June 15, 2016
|
| Coupon: | 2.3%
|
| Price: | 99.768
|
| Yield: | 2.35%
|
| Spread: | Treasuries plus 90 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | 95 bps area
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | June 15, 2021
|
| Coupon: | 4.1%
|
| Price: | 99.742
|
| Yield: | 4.132%
|
| Spread: | Treasuries plus 120 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 125 bps area
|
|
|
| Notes due 2042
|
| Amount: | $1.25 billion
|
| Maturity: | June 15, 2042
|
| Coupon: | 5.65%
|
| Price: | 99.51
|
| Yield: | 5.684%
|
| Spread: | Treasuries plus 140 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 145 bps area
|
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