By Devika Patel
Knoxville, Tenn., May 19 – Pfizer Inc. offered further details about a $4 billion sale of senior notes (A1/AA-/A+) that priced in four tranches on Monday, according to an FWP filed with the Securities and Exchange Commission.
A $750 million offering of 0.8% five-year notes priced at a spread of Treasuries plus 55 basis points. These notes priced at 99.376 to yield 0.928%.
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. These notes priced at 99.689 to yield 1.734%.
The notes were talked to price at the Treasuries plus 130 bps area.
A $1 billion tranche of 2.55% 20-year notes priced at Treasuries plus 115 bps, compared to talk in the 150 bps over Treasuries area. These notes priced at 99.379 to yield 2.59%.
The company sold $1.25 billion of 2.7% 30-year notes at a 130 bps over Treasuries spread. These notes priced at 99.185 to yield 2.74%.
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., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., HSBC Securities (USA) Inc. and Mizuho Securities USA Inc.
|
| Senior co-managers: | Goldman Sachs & Co. LLC and RBC Capital Markets Corp.
|
| Co-managers: | Santander Investment Securities Inc., SG Americas Securities LLC, Academy Securities Inc., Samuel A. Ramirez & Co. Inc., Siebert Williams Shank & Co. LLC and Stern Brothers & Co.
|
| Trade date: | May 18
|
| Settlement date: | May 28
|
| 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%
|
| Price: | 99.376
|
| Yield: | 0.928%
|
| Spread: | Treasuries plus 55 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps until April 28, 2025, then a par call
|
| Price guidance: | Treasuries plus 90 bps area
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 28, 2030
|
| Coupon: | 1.7%
|
| Price: | 99.689
|
| Yield: | 1.734%
|
| Spread: | Treasuries plus 100 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until Feb. 28, 2030, then a par call
|
| Price guidance: | Treasuries plus 130 bps area
|
|
|
| 20-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 28, 2040
|
| Coupon: | 2.55%
|
| Price: | 99.379
|
| Yield: | 2.59%
|
| Spread: | Treasuries plus 115 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps until Nov. 28, 2039, then a par call
|
| Price guidance: | Treasuries plus 150 bps area
|
|
|
| 30-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | May 28, 2050
|
| Coupon: | 2.7%
|
| Price: | 99.185
|
| Yield: | 2.74%
|
| Spread: | Treasuries plus 130 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps until Nov. 28, 2049, then a par call
|
| Price guidance: | Treasuries plus 160 bps area
|
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