By Lisa Kerner
Charlotte, N.C., Aug. 11 – Amgen Inc. priced $3.75 billion of five-, seven- and 10-year senior notes (Baa1/A) and an add-on to its 4.4% senior notes due 2045 on Thursday, according to an FWP filed with the Securities and Exchange Commission.
Some details of the issuance were reported on Wednesday.
The company priced $750 million of 1.85% five-year notes at 99.891 to yield 1.873%. The notes sold at 80 basis points over Treasuries, on the tight side of guidance of 85 bps, plus or minus 5 bps, over Treasuries.
Amgen sold $750 million of 2.25% seven-year notes at 99.749 to yield 2.289%. The notes priced at 95 bps over Treasuries and were guided at 100 bps over Treasuries, plus or minus 5 bps.
The company placed $1.25 billion of 2.6% 10-year notes at 110 bps over Treasuries, on the tight side of guidance of 115 bps, plus or minus 5 bps, over Treasuries. The notes sold at 99.939 to yield 2.607%.
Amgen priced a $1 billion add-on to its 4.4% senior notes due May 1, 2045 at 107.892 to yield 3.934%, or Treasuries plus 170 bps. The notes were guided at 175 bps, plus or minus 5 bps, over Treasuries.
Amgen originally sold $1.25 billion of the bonds on April 28, 2015 at 175 bps over Treasuries. The total outstanding is $2.25 billion.
The bookrunners were Citigroup Global Markets Inc., Goldman Sachs & Co., HSBC Securities (USA) Inc. and Morgan Stanley & Co. LLC.
Proceeds will be used to repay debt, including borrowings under the company’s term loan credit agreement, to repurchase common stock and for general corporate purposes, according to a 424B3 filed with the SEC.
Amgen is a Thousand Oaks, Calif., manufacturer and marketer of human therapeutics based upon advances in cellular and molecular biology.
| Issuer: | Amgen Inc.
|
| Amount: | $3.75 billion
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co., HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC
|
| Senior co-managers: | Barclays, J.P. Morgan Securities LLC, Mizuho Securities USA Inc., RBC Capital Markets, LLC, UBS Securities LLC
|
| Co-managers: | Academy Securities, Inc., BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., BofA Merrill Lynch, MUFG, SMBC Nikko Securities America, Inc., Wells Fargo Securities LLC
|
| Trade date: | Aug. 10
|
| Settlement date: | Aug. 19
|
| Ratings: | Moody’s: Baa1
|
| S&P: A
|
| Fitch: BBB (for 2045 notes)
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | Aug. 19, 2021
|
| Coupon: | 1.85%
|
| Price: | 99.891
|
| Yield: | 1.873%
|
| Spread: | Treasuries plus 80 bps
|
| Price guidance: | Treasuries plus 85 bps area, plus or minus 5 bps
|
|
|
| Seven-year notes
|
| Amount: | $750 million
|
| Maturity: | Aug. 19, 2023
|
| Coupon: | 2.25%
|
| Price: | 99.749
|
| Yield: | 2.289%
|
| Spread: | Treasuries plus 95 bps
|
| Price guidance: | Treasuries plus 100 bps area, plus or minus 5 bps
|
|
|
| 10-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Aug. 19, 2026
|
| Coupon: | 2.6%
|
| Price: | 99.939
|
| Yield: | 2.607%
|
| Spread: | Treasuries plus 110 bps
|
| Price guidance: | Treasuries plus 115 bps area, plus or minus 5 bps
|
|
|
| Add-on notes
|
| Amount: | $1 billion reopening
|
| Maturity: | May 1, 2045
|
| Coupon: | 4.4%
|
| Price: | 107.892 plus accrued interest from May 1, 2016
|
| Yield: | 3.934%
|
| Spread: | Treasuries plus 170 bps
|
| Price guidance: | Treasuries plus 175 bps area, plus or minus 5 bps
|
| Total outstanding: | $2.25 billion, including $1.25 billion priced on April 28, 2015 at 175 bps over Treasuries
|
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