By Cristal Cody
Eureka Springs, Ark., Nov. 14 – Pfizer Inc. sold $6 billion of fixed-rate notes (A1/AA/A+) in five tranches on Monday, according to a market source.
Pfizer priced $1 billion of 1.7% three-year notes with a spread of 45 basis points over Treasuries.
The company sold $1 billion of 2.2% five-year notes at 55 bps over Treasuries.
The $1.75 billion tranche of 3% 10-year notes priced with a spread of 85 bps over Treasuries.
Pfizer also priced $1 billion of 4% 20-year notes at a 100 bps spread over Treasuries.
In the final tranche, the company sold $1.25 billion of 4.125% 30-year notes with a spread of 110 bps over Treasuries.
All of the tranches priced on the tight side of guidance.
BofA Merrill Lynch, Citigroup Global Markets Inc. Credit Suisse Securities (USA) LLC and RBC Capital Markets LLC were the bookrunners.
Proceeds will be used for a cash tender offer to purchase for cash any and all of the company’s $3.25 billion of 6.2% senior notes due March 15, 2019 and for general corporate purposes, according to a 424B3 filing with the Securities and Exchange Commission.
The biopharmaceutical company is based in Foster City, Calif.
| Issuer: | Pfizer Inc.
|
| Amount: | $6 billion
|
| Description: | Notes
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc. Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC
|
| Trade date: | Nov. 14
|
| Ratings: | Moody’s: A1
|
| S&P: AA
|
| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | Dec. 15, 2019
|
| Coupon: | 1.7%
|
| Spread: | Treasuries plus 45 bps
|
| Price guidance: | Treasuries plus 50 bps area, plus or minus 5 bps
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | Dec. 15, 2021
|
| Coupon: | 2.2%
|
| Spread: | Treasuries plus 55 bps
|
| Price guidance: | Treasuries plus 60 bps area, plus or minus 5 bps
|
|
|
| 10-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | Dec. 15, 2026
|
| Coupon: | 3%
|
| Spread: | Treasuries plus 85 bps
|
| Price guidance: | Treasuries plus 90 bps area, plus or minus 5 bps
|
|
|
| 20-year notes
|
| Amount: | $1 billion
|
| Maturity: | Dec. 15, 2036
|
| Coupon: | 4%
|
| Spread: | Treasuries plus 100 bps
|
| Price guidance: | Treasuries plus 105 bps area, plus or minus 5 bps
|
|
|
| 30-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Dec. 15, 2046
|
| Coupon: | 4.125%
|
| Spread: | Treasuries plus 110 bps
|
| Price guidance: | Treasuries plus 115 bps area, plus or minus 5 bps
|
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