By Aleesia Forni
Virginia Beach, April 28 – Amgen Inc. sold $3.5 billion of senior notes (Baa1/A/BBB) in four tranches on Tuesday, according to a market source.
The company priced $750 million of 2.125% notes due 2020 at 99.925 to yield 2.141%, or Treasuries plus 75 basis points.
The notes sold at the tight end of guidance, which had firmed from initial talk in the 80 bps area.
A second tranche was $500 million of 2.7% notes due 2022 priced at 100 bps over Treasuries. The notes priced at 99.715 to yield 2.745%.
Pricing was at the tight end of the Treasuries plus 105 bps area guidance. Initial talk was set in the 100 bps area over Treasuries.
A $1 billion 3.125% note due 2025 sold with a spread of Treasuries plus 120 bps. Pricing was at 99.456 to yield 3.189%.
Guidance was set in the 125 bps area over Treasuries after having firmed from initial talk in the 130 bps area.
Amgen also sold $1.25 billion of 4.4% bonds due 2045 at 99.406 to yield 4.436% with a spread of Treasuries plus 175 bps.
Pricing was in line with the 175 bps area guidance. Initial talk was set in the 180 bps area over Treasuries.
Morgan Stanley & Co. LLC, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. are the bookrunners.
The company intends to use the net proceeds from this offering to repurchase additional shares of common stock under its stock repurchase program, to repay outstanding debt, including borrowings under a term loan credit agreement, and for general corporate purposes.
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: | $3.5 billion
|
| Bookrunners: | Morgan Stanley & Co. LLC, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co.
|
| Trade date: | April 28
|
| Settlement date: | May 1
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: A
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | May 1, 2020
|
| Coupon: | 2.125%
|
| Price: | 99.925
|
| Yield: | 2.141%
|
| Spread: | 75 bps over Treasuries
|
| Price guidance: | 80 bps area over Treasuries, tightened from 90 bps area
|
|
|
| Seven-year notes
|
| Amount: | $500 million
|
| Maturity: | May 1, 2022
|
| Coupon: | 2.7%
|
| Price: | 99.715
|
| Yield: | 2.745%
|
| Spread: | 100 bps over Treasuries
|
| Price guidance: | 105 bps area over Treasuries, tightened from 110 bps area
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 1, 2025
|
| Coupon: | 3.125%
|
| Price: | 99.456
|
| Yield: | 3.189%
|
| Spread: | 120 bps over Treasuries
|
| Price guidance: | 125 bps area over Treasuries, tightened from 130 bps area
|
|
|
| 30-year bonds
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| Amount: | $1.25 billion
|
| Maturity: | May 1, 2045
|
| Coupon: | 4.4%
|
| Price: | 99.406
|
| Yield: | 4.436%
|
| Spread: | 175 bps over Treasuries
|
| Price guidance: | 175 bps area over Treasuries, tightened from 180 bps area
|
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