By Devika Patel
Knoxville, Tenn., May 9 – Amgen Inc. offered further details about a $3.5 billion five-part sale of senior notes (Baa1/A) that priced on Monday, according to an FWP filed with the Securities and Exchange Commission.
The company sold $300 million of two-year floating-rate notes at Libor plus 32 basis points. These notes were sold at par.
Amgen priced a $700 million offering of 1.9% two-year fixed-rate notes at a spread of 60 bps over Treasuries. These notes priced at 99.949 to yield 1.926%.
Amgen placed a $300 million tranche of three-year floating-rate notes at Libor plus 45 bps. These notes were sold at par.
The company also priced $700 million three-year fixed-rate notes with a 2.2% coupon and a Treasuries plus 70 bps spread. These notes priced at 99.945 to yield 2.219%.
In the final tranche, Amgen sold $1.5 billion of 2.65% five-year fixed-rate notes at a spread of 80 bps over Treasuries. These notes priced at 99.786 to yield 2.696%.
BofA Merrill Lynch, Goldman Sachs & Co., Barclays and Mizuho Securities USA Inc. were the bookrunners.
The floaters are non-callable, while the 2019 and 2020 fixed-rate notes will have make-whole calls and the 2022 fixed-rate notes feature a make-whole call until a month prior to maturity and then a par call, according to a 424B3 filing with the Securities and Exchange Commission.
Proceeds from the deal 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: | $3.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Goldman Sachs & Co., Barclays and Mizuho Securities USA Inc.
|
| Senior co-managers: | BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Co-managers: | Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., MFR Securities, Inc., MUFG, RBC Capital Markets Corp., SMBC Nikko Securities America, Inc., UBS Securities LLC and Wells Fargo Securities LLC
|
| Trade date: | May 8
|
| Settlement date: | May 11
|
| Ratings: | Moody’s: Baa1
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| Two-year floaters
|
| Amount: | $300 million
|
| Maturity: | May 10, 2019
|
| Coupon: | Libor plus 32 bps
|
| Price: | Par
|
| Yield: | Libor plus 32 bps
|
|
|
| Two-year notes
|
| Amount: | $700 million
|
| Maturity: | May 10, 2019
|
| Coupon: | 1.9%
|
| Price: | 99.949
|
| Yield: | 1.926%
|
| Spread: | Treasuries plus 60 bps
|
| Call features: | Make-whole call at Treasuries plus 10 bps
|
|
|
| Three-year floaters
|
| Amount: | $300 million
|
| Maturity: | May 11, 2020
|
| Coupon: | Libor plus 45 bps
|
| Price: | Par
|
| Yield: | Libor plus 45 bps
|
|
|
| Three-year notes
|
| Amount: | $700 million
|
| Maturity: | May 11, 2020
|
| Coupon: | 2.2%
|
| Price: | 99.945
|
| Yield: | 2.219%
|
| Spread: | Treasuries plus 70 bps
|
| Call features: | Make-whole call at Treasuries plus 12.5 bps
|
|
|
| Five-year notes
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| Amount: | $1.5 billion
|
| Maturity: | May 11, 2022
|
| Coupon: | 2.65%
|
| Price: | 99.786
|
| Yield: | 2.696%
|
| Spread: | Treasuries plus 80 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps until a month prior to maturity and then a par call
|
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