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Pfizer to sell up to $10 billion of notes in five tranches, gives guidance: sources
By Andrea Heisinger
New York, March 16 - Pfizer Inc. is planning to sell a large offering of notes in five tranches, with pricing expected Tuesday, market sources said.
The deal consists of four fixed-rate tranches due 2012, 2015, 2019 and 2039. A tranche of two-year floating-rate notes was also added.
It is expected to total up to $10 billion, a source said.
Price talk evolved throughout the day, starting in the low 300 basis points for all of the fixed-rate tranches. By the end of the day, talk on the six-, 10- and 30-year tranches had widened.
The three-year tranche is talked at 310 bps over Treasuries. Guidance for the six-year notes was in the 345 bps area over Treasuries, up from the 330 bps area, and the 10-year tranche was also up, to the 330 bps area from 320 bps. The 30-year notes guidance was also up, to the 350 bps area from 330 bps.
The floaters are talked at three-month Libor plus 200 bps, plus or minus 5 bps.
There is plenty of demand for the notes at their spread talk, a source said.
Another source backed this up, saying there was "$20 billion on the pad" so far.
Bookrunners are Banc of America Securities LLC, Barclays Capital Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities Inc.
Co-managers are Credit Suisse Securities, Deutsche Bank Securities Inc., RBS Greenwich Capital, HSBC Securities, Mitsubishi UFJ Securities, Santander Investment and UBS Investment Bank.
Proceeds will be used for general corporate purposes, including funding a portion of the purchase price of the Wyeth acquisition and refinancing existing debt. Proceeds may also be temporarily invested in short-term marketable securities.
The pharmaceutical company is based in New York City.
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