By Andrea Heisinger
New York, May 11 - Amgen Inc. priced $3 billion of senior notes (Baa1/A+/BBB) late on Thursday in three tranches and gave terms in FWP filings with the Securities and Exchange Commission on Friday.
A $1.25 billion tranche of 2.125% five-year notes priced at 99.821 to yield 2.163% with a spread of Treasuries plus 140 basis points. The notes were sold tighter than talk in the 150 bps area.
There was a $750 million tranche of 3.625% 10-year paper sold at 99.535 to yield 3.681% with a spread of Treasuries plus 185 bps. The notes priced in line with guidance in the 185 bps area.
A third part was $1 billion of 5.375% notes due 2043 priced at 99.985 to yield 5.376% with a spread of Treasuries plus 235 bps. The bonds were sold in line with talk in the 235 bps area.
The notes feature a change-of-control put at 101%.
Bookrunners were Bank of America Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and UBS Securities LLC.
Senior co-managers were Barclays Capital Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Mitsubishi UFJ Securities (USA) Inc.
Co-managers were HSBC Securities (USA) Inc., SMBC Nikko Capital Markets Ltd. and Wells Fargo Securities LLC.
Proceeds are being used for general corporate purposes and to repurchase shares of common stock.
Amgen was last in the market with a $6 billion deal of senior notes in four parts on Nov. 7, 2011. A 2.5% five-year note from that offering priced at 162.5 bps over Treasuries while a 3.875% 10-year note sold at a 187.5 bps spread. The 5.15% 30-year bonds from the same deal were sold at a 212.5 bps spread.
The manufacturer and marketer of human therapeutics based upon advances in cellular and molecular biology is based in Thousand Oaks, Calif.
| Issuer: | Amgen Inc.
|
| Issue: | Senior notes
|
| Amount: | $3 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, UBS Securities LLC
|
| Senior co-managers: | Barclays Capital Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Mitsubishi UFJ Securities (USA) Inc.
|
| Co-managers: | HSBC Securities (USA) Inc., SMBC Nikko Capital Markets Ltd., Wells Fargo Securities LLC
|
| Change-of-control put: | 101%
|
| Trade date: | May 10
|
| Settlement date: | May 15
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: A+
|
| Fitch: BBB
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | May 15, 2017
|
| Coupon: | 2.125%
|
| Price: | 99.821
|
| Yield: | 2.163%
|
| Spread: | Treasuries plus 140 bps
|
| Price talk: | 150 bps area
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | May 15, 2022
|
| Coupon: | 3.625%
|
| Price: | 99.535
|
| Yield: | 3.681%
|
| Spread: | Treasuries plus 185 bps
|
| Price talk: | 185 bps area
|
|
|
| Notes due 2043
|
| Amount: | $1 billion
|
| Maturity: | May 15, 2043
|
| Coupon: | 5.375%
|
| Price: | 99.985
|
| Yield: | 5.376%
|
| Spread: | Treasuries plus 235 bps
|
| Price talk: | 235 bps area
|
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