By Cristal Cody
Eureka Springs, Ark., May 31 – Pfizer Inc. sold $5 billion of notes (A1/AA/A+) in five parts, including a tap of existing long bonds on Tuesday, according to a market source.
The company sold $1.25 billion of 1.2% two-year notes at Treasuries plus 35 basis points, on the tight side of guidance of 40 bps, plus or minus 5 bps, over Treasuries.
Pfizer priced $850 million of 1.45% three-year notes at 45 bps over Treasuries, compared to talk of Treasuries plus 50 bps, plus or minus 5 bps.
The $1.15 billion tranche of 1.95% five-year notes priced with a spread of 60 bps over Treasuries. The notes were guided at Treasuries plus 65 bps, plus or minus 5 bps.
Pfizer placed $1.25 billion of 2.75% 10-year notes at 90 bps over Treasuries, compared to guidance of 95 bps, plus or minus 5 bps, over Treasuries.
In addition, Pfizer priced a $500 million add-on to its 4.4% notes due May 15, 2044 at Treasuries plus 115 bps, on the tight side of guidance of 120 bps, plus or minus 5 bps, over Treasuries.
Pfizer originally sold the 4.4% notes due 2044 in a $500 million offering on May 12, 2014 at 95 bps over Treasuries. The total outstanding is $1 billion.
Barclays, Goldman Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds will be used for general corporate purposes and to repay outstanding commercial paper, according to details from a 424B3 filing with the Securities and Exchange Commission.
Pfizer is a biopharmaceutical company based in New York.
Issuer: | Pfizer Inc.
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Amount: | $5 billion
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Securities: | Senior notes
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Bookrunners: | Barclays, Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
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Pricing date: | May 31
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Settlement: | June 3
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Ratings: | Moody’s: A1
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| S&P: AA
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| Fitch: A+
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Distribution: | SEC registered
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Two-year notes
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Amount: | $1.25 billion
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Maturity: | June 1, 2018
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Coupon: | 1.2%
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Spread: | Treasuries plus 35 bps
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Price guidance: | Treasuries plus 40 bps, plus or minus 5 bps
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Three-year notes
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Amount: | $850 million
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Maturity: | June 3, 2019
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Coupon: | 1.45%
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Spread: | Treasuries plus 45 bps
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Price guidance: | Treasuries plus 50 bps, plus or minus 5 bps
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Five-year notes
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Amount: | $1.15 billion
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Maturity: | June 3, 2021
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Coupon: | 1.95%
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Spread: | Treasuries plus 60 bps
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Price guidance: | Treasuries plus 65 bps, plus or minus 5 bps
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|
10-year notes
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Amount: | $1.25 billion
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Maturity: | June 3, 2026
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Coupon: | 2.75%
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Spread: | Treasuries plus 90 bps
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Price guidance: | Treasuries plus 95 bps, plus or minus 5 bps
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Add-on
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Amount: | $500 million reopening
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Maturity: | May 15, 2044
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Coupon: | 4.4%
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Spread: | Treasuries plus 115 bps
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Price guidance: | Treasuries plus 120 bps, plus or minus 5 bps
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Total outstanding: | $1 billion
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