By Andrea Heisinger
New York, March 17 - Pfizer Inc. priced $13.5 billion of notes (Aa2/AAA/AA) in five tranches Tuesday, a day after the deal was announced, an informed source said.
A term sheet was not available at press time.
A $1.25 billion tranche of two-year floating-rate notes priced at par with a coupon of three-month Libor plus 195 basis points. This was at the tight end of guidance of Libor plus 200 bps, plus or minus 5 bps.
The $3.5 billion of 4.45% three-year notes priced to yield Treasuries plus 305 bps. Guidance was in the 310 bps area.
The $3 billion of 5.35% six-year notes priced to yield Treasuries plus 340 bps, making it also at the tight end of price talk that was in the 345 bps area.
The $3.25 billion of 6.2% 10-year notes priced to yield Treasuries plus 325 bps. Price talk was in the 330 bps area.
The $2.5 billion final tranche of 7.2% 30-year notes priced to yield Treasuries plus 345 bps. Like the other tranches, this was at the tight end of talk that was in the 350 bps area.
Price talk for all of the tranches had a margin of plus or minus 5 bps.
Bookrunners were Banc of America Securities LLC, Barclays Capital Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities Inc.
Co-managers were 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. The proceeds may also be temporarily invested in short-term marketable securities.
The pharmaceutical company is based in New York City.
| Issuer: | Pfizer Inc.
|
| Issue: | Notes
|
| Total amount: | $13.5 billion
|
| Bookrunners: | Banc of America Securities LLC, Barclays Capital Inc., Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities Inc.
|
| Co-managers: | Credit Suisse Securities, Deutsche Bank Securities Inc., RBS Greenwich Capital, HSBC Securities, Mitsubishi UFJ Securities, Santander Investment, UBS Investment Bank
|
| Trade date: | March 17
|
| Settlement date: | March 24
|
| Ratings: | Moody's: Aa2
|
| Standard & Poor's: AAA
|
| Fitch: AA
|
|
|
| Two-year floaters
|
| Amount: | $1.25 billion
|
| Maturity: | March 15, 2011
|
| Coupon: | Three-month Libor plus 195 bps
|
| Price: | Par
|
| Yield: | Three-month Libor plus 195 bps
|
| Price talk: | Three-month Libor plus 200 bps, plus or minus 5 bps
|
|
|
| Three-year notes
|
| Amount: | $3.5 billion
|
| Maturity: | March 15, 2012
|
| Coupon: | 4.45%
|
| Spread: | Treasuries plus 305 bps
|
| Price talk: | 310 bps area, plus or minus 5 bps
|
|
|
| Six-year notes
|
| Amount: | $3 billion
|
| Maturity: | March 15, 2015
|
| Coupon: | 5.35%
|
| Spread: | Treasuries plus 340 bps
|
| Price talk: | 345 bps area, plus or minus 5 bps
|
|
|
| 10-year notes
|
| Amount: | $3.25 billion
|
| Maturity: | March 15, 2019
|
| Coupon: | 6.2%
|
| Spread: | Treasuries plus 325 bps
|
| Price talk: | 330 bps, plus or minus 5 bps
|
|
|
| 30-year notes
|
| Amount: | $2.5 billion
|
| Maturity: | March 15, 2039
|
| Coupon: | 7.2%
|
| Spread: | Treasuries plus 345 bps
|
| Price talk: | 350 bps area, plus or minus 5 bps
|
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