By Cristal Cody
Tupelo, Miss., May 18 – Pfizer Inc. priced $4 billion of senior notes (A1/AA-/A+) in four tranches on Monday, according to a market source.
A $750 million offering of 0.8% five-year notes priced at a spread of Treasuries plus 55 basis points.
Initial price talk was in the 90 bps spread area.
The company sold $1 billion of 1.7% 10-year notes at a spread of 100 bps over Treasuries.
The notes were talked to price at the Treasuries plus 130 bps spread area.
A $1 billion tranche of 2.55% 20-year notes priced at a Treasuries plus 115 bps spread, compared to talk in the 150 bps over Treasuries area.
The company sold $1.25 billion of 2.7% 30-year notes at a 130 bps over Treasuries spread.
Initial price talk was at the 160 bps spread area.
Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes, including to refinance, redeem or repurchase existing debt and repay commercial paper.
The biopharmaceutical company is based in New York.
| Issuer: | Pfizer Inc.
|
| Amount: | $4 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC
|
| Trade date: | May 18
|
| Ratings: | Moody’s: A1
|
| S&P: AA-
|
| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | May 28, 2025
|
| Coupon: | 0.8%
|
| Spread: | Treasuries plus 55 bps
|
| Price guidance: | Treasuries plus 90 bps area
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 28, 2030
|
| Coupon: | 1.7%
|
| Spread: | Treasuries plus 100 bps
|
| Price guidance: | Treasuries plus 130 bps area
|
|
|
| 20-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 28, 2040
|
| Coupon: | 2.55%
|
| Spread: | Treasuries plus 115 bps
|
| Price guidance: | Treasuries plus 150 bps area
|
|
|
| 30-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | May 28, 2050
|
| Coupon: | 2.7%
|
| Spread: | Treasuries plus 130 bps
|
| Price guidance: | Treasuries plus 160 bps area
|
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