By Andrea Heisinger
New York, May 28 - Pfizer Inc. priced $4 billion of notes (A1/AA/A+) in five tranches during Tuesday's session, a source close to the trade said.
The sale included $750 million of 0.9% notes due January 2017 priced at 99.84 to yield 0.945% with a spread of Treasuries plus 45 basis points. Initial guidance was in the high 40 bps area.
The notes carry a make-whole call at Treasuries plus 10 bps.
There was $500 million of five-year floating-rate notes sold at par to yield Libor plus 30 bps.
The company also priced $1 billion of 1.5% five-year fixed-rate notes at 99.942 to yield 1.512% with a spread of Treasuries plus 50 bps. Talk was initially in the low 50 bps area.
The tranche has a make-whole call at Treasuries plus 10 bps.
A $1 billion tranche of 3% 10-year notes sold at 99.681 to yield 3.035% with a spread of Treasuries plus 87.5 bps. Guidance was in the low 80 bps area.
There is a make-whole call at 15 bps over Treasuries.
Finally, there was $750 million of 4.3% 30-year bonds priced at 99.781 to yield 4.313% with a spread of 100 bps over Treasuries. Initial talk was in the 100 bps area.
The bonds have a make-whole call at 15 bps over Treasuries.
Bookrunners were Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and RBS Securities Inc.
Proceeds will be used for general corporate purposes, including repayment at maturity of €1.85 billion 3.625% notes due in June, and to prefund repayment of a portion of outstanding 4.5% notes due in February 2014 and 5.5% notes due in February 2014.
The New York-based global biopharmaceutical company was last in the U.S. bond market with a $13.5 billion offering in five tranches on March 17, 2009.
| Issuer: | Pfizer Inc.
|
| Issue: | Notes
|
| Amount: | $4 billion
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., RBS Securities Inc.
|
| Trade date: | May 28
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: AA
|
| Fitch: A+
|
|
|
| Notes due 2017
|
| Amount: | $750 million
|
| Maturity: | Jan. 15, 2017
|
| Coupon: | 0.9%
|
| Price: | 99.84
|
| Yield: | 0.945%
|
| Spread: | Treasuries plus 45 bps
|
| Call: | Make-whole at Treasuries plus 10 bps
|
| Price talk: | High 40 bps area
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | June 15, 2018
|
| Coupon: | 1.5%
|
| Price: | 99.942
|
| Yield: | 1.512%
|
| Spread: | Treasuries plus 50 bps
|
| Call: | Make-whole at Treasuries plus 10 bps
|
| Price talk: | Low 50 bps area
|
|
|
| Five-year floaters
|
| Amount: | $500 million
|
| Maturity: | June 15, 2018
|
| Coupon: | Libor plus 30 bps
|
| Price: | Par
|
| Yield: | Libor plus 30 bps
|
| Call: | Non-callable
|
| Price talk: | Libor equivalent to five-year fixed rates notes
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | June 15, 2023
|
| Coupon: | 3%
|
| Price: | 99.681
|
| Yield: | 3.035%
|
| Spread: | Treasuries plus 87.5 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | High 80 bps area
|
|
|
| 30-year bonds
|
| Amount: | $750 million
|
| Maturity: | June 15, 2043
|
| Coupon: | 4.3%
|
| Price: | 99.781
|
| Yield: | 4.313%
|
| Spread: | Treasuries plus 100 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | 100 bps area
|
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