New Issue: Perrigo prices upsized $600 million 2.95% 10-year notes at Treasuries plus 125 bps

By Andrea Heisinger

New York, May 9 - Perrigo Co. sold an upsized $600 million of 2.95% 10-year senior notes (Baa3/BBB/) on Thursday to yield Treasuries plus 125 basis points, a market source said.

Initial guidance was in the 140 bps area over Treasuries, the source said at midday, adding that the company does not have any outstanding bonds. The size was increased from $500 million.

Pricing was at 99.485 to yield 3.01%. There is a make-whole call at Treasuries plus 20 bps until Feb. 15, 2023 and a par call after that date.

The bonds feature a change-of-control put at 101%.

Active bookrunners were BofA Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC. J.P. Morgan Securities LLC was a passive bookrunner.

Proceeds will be used for general corporate purposes.

The health care company and maker of generic and over-the-counter pharmaceuticals is based in Allegan, Mich.

Issuer:	Perrigo Co.
Issue:	Senior notes
Amount:	$600 million, upsized from $500 million
Maturity:	May 15, 2023
Bookrunners:	BofA Merrill Lynch, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC (active), J.P. Morgan Securities LLC (passive)
Senior co-manager:	HSBC Securities (USA) Inc.
Co-managers:	Fifth Third Securities, Inc., Hapoalim Securities USA, Inc., PNC Capital Markets LLC, RBS Securities Inc., U.S. Bancorp Investments, Inc., Comerica Securities, Inc.
Coupon:	2.95%
Price:	99.485
Yield:	3.01%
Spread:	Treasuries plus 125 bps
Call:	Make-whole at Treasuries plus 20 bps to Feb. 15, 2023, par call after
Change-of-control put:	101%
Trade date:	May 9
Settlement date:	May 16
Ratings:	Moody's: Baa3
	Standard & Poor's: BBB
Price talk:	140 bps area (initial)

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