By Lisa Kerner
Charlotte, N.C., June 1 – Pfizer Inc. priced $5 billion of notes (A1/AA/A+) in five parts, according to an FWP filed with the Securities and Exchange Commission.
The company sold $1.25 billion of 1.2% two-year notes at 99.927 to yield 1.237%. The notes priced 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 99.886 to yield 1.489%, or 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 at 99.853 to yield 1.981%, 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. The notes priced at 99.974 to yield 2.753%.
In addition, Pfizer priced a $500 million add-on to its 4.4% notes due May 15, 2044 at 110.146 to yield 3.807%. The notes priced 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 SEC.
Pfizer is a biopharmaceutical company based in New York.
| Issuer: | Pfizer Inc.
|
| Amount: | $5 billion
|
| Securities: | Senior notes
|
| Bookrunners: | Barclays, Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
|
| Passive bookrunners: | BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc.
|
| Senior co-managers: | HSBC Securities (USA) Inc., RBC Capital Markets, LLC
|
| Co-managers: | BNP Paribas Securities Corp., Drexel Hamilton, LLC, Lebenthal & Co., Mizuho Securities USA Inc., Siebert Brandford Shank & Co., LLC, Williams Capital Group LP
|
| Pricing date: | May 31
|
| Settlement: | June 3
|
| Ratings: | Moody’s: A1
|
| S&P: AA
|
| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| Two-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | June 1, 2018
|
| Coupon: | 1.2%
|
| Price: | 99.927
|
| Yield: | 1.237%
|
| Spread: | Treasuries plus 35 bps
|
| Price guidance: | Treasuries plus 40 bps, plus or minus 5 bps
|
| Make-whole call: Treasuries plus 5 bps
|
|
|
| Three-year notes
|
| Amount: | $850 million
|
| Maturity: | June 3, 2019
|
| Coupon: | 1.45%
|
| Price: | 99.886
|
| Yield: | 1.489%
|
| Spread: | Treasuries plus 45 bps
|
| Price guidance: | Treasuries plus 50 bps, plus or minus 5 bps
|
| Make-whole call: Treasuries plus 7 bps
|
|
|
| Five-year notes
|
| Amount: | $1.15 billion
|
| Maturity: | June 3, 2021
|
| Coupon: | 1.95%
|
| Price: | 99.853
|
| Yield: | 1.981%
|
| Spread: | Treasuries plus 60 bps
|
| Price guidance: | Treasuries plus 65 bps, plus or minus 5 bps
|
| Make-whole call: Treasuries plus 10 bps
|
|
|
| 10-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | June 3, 2026
|
| Coupon: | 2.75%
|
| Price: | 99.974
|
| Yield: | 2.753%
|
| Spread: | Treasuries plus 90 bps
|
| Price guidance: | Treasuries plus 95 bps, plus or minus 5 bps
|
| Make-whole call: Treasuries plus 15 bps
|
|
|
| Add-on notes
|
| Amount: | $500 million reopening
|
| Maturity: | May 15, 2044
|
| Coupon: | 4.4%
|
| Price: | 110.146
|
| Yield: | 3.807%
|
| Spread: | Treasuries plus 115 bps
|
| Price guidance: | Treasuries plus 120 bps, plus or minus 5 bps
|
| Make-whole call: Treasuries plus 15 bps
|
| Total outstanding: | $1 billion
|
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