By Devika Patel
Knoxville, Tenn., Nov. 15 – Pfizer Inc. offered further details about a $6 billion sale of fixed-rate notes (A1/AA/A+) in a 424B5 filed Tuesday with the Securities and Exchange Commission. The deal priced in five tranches on Monday.
Pfizer priced $1 billion of 1.7% three-year notes at 99.928 with a spread of 45 basis points over Treasuries. These notes have a make-whole call at Treasuries plus 10 basis points.
The company sold $1 billion of 2.2% five-year notes at 99.909 with a spread of 55 bps over Treasuries. These notes have a make-whole call at Treasuries plus 10 basis points.
The $1.75 billion tranche of 3% 10-year notes priced at 99.148 with a spread of 85 bps over Treasuries. These notes have a make-whole call at Treasuries plus 15 basis points.
Pfizer also priced $1 billion of 4% 20-year notes at 99.519 with a spread of 100 bps spread over Treasuries. These notes have a make-whole call at Treasuries plus 15 basis points.
In the final tranche, the company sold $1.25 billion of 4.125% 30-year notes at 99.826 with a spread of 110 bps over Treasuries. These notes have a make-whole call at Treasuries plus 20 basis points.
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 New York.
| Issuer: | Pfizer Inc.
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| Amount: | $6 billion
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| Description: | Notes
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| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc. Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC
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| Senior co-managers: | BNP Paribas Securities Corp. and Santander Investment Securities Inc.
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| Co-managers: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Academy Securities, Inc., Samuel A. Ramirez & Co. Inc., Siebert Cisneros Shank & Co., LLC and Williams Capital Group LP
|
| Trade date: | Nov. 14
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| Settlement date: | Nov. 21
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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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|
|
| Three-year notes
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| Amount: | $1 billion
|
| Maturity: | Dec. 15, 2019
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| Coupon: | 1.7%
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| Price: | 99.928
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| Yield: | 1.724%
|
| Spread: | Treasuries plus 45 bps
|
| Price guidance: | Treasuries plus 50 bps area, plus or minus 5 bps
|
| Call feature: | Make-whole call at Treasuries plus 10 bps
|
|
|
| Five-year notes
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| Amount: | $1 billion
|
| Maturity: | Dec. 15, 2021
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| Coupon: | 2.2%
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| Price: | 99.909
|
| Yield: | 2.219%
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| Spread: | Treasuries plus 55 bps
|
| Price guidance: | Treasuries plus 60 bps area, plus or minus 5 bps
|
| Call feature: | Make-whole call at Treasuries plus 10 bps
|
|
|
| 10-year notes
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| Amount: | $1.75 billion
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| Maturity: | Dec. 15, 2026
|
| Coupon: | 3%
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| Price: | 99.148
|
| Yield: | 3.099%
|
| Spread: | Treasuries plus 85 bps
|
| Price guidance: | Treasuries plus 90 bps area, plus or minus 5 bps
|
| Call feature: | Make-whole call at Treasuries plus 15 bps
|
|
|
| 20-year notes
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| Amount: | $1 billion
|
| Maturity: | Dec. 15, 2036
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| Coupon: | 4%
|
| Price: | 99.519
|
| Yield: | 4.035%
|
| Spread: | Treasuries plus 100 bps
|
| Price guidance: | Treasuries plus 105 bps area, plus or minus 5 bps
|
| Call feature: | Make-whole call at Treasuries plus 15 bps
|
|
|
| 30-year notes
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| Amount: | $1.25 billion
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| Maturity: | Dec. 15, 2046
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| Coupon: | 4.125%
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| Price: | 99.826
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| Yield: | 4.135%
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| Spread: | Treasuries plus 110 bps
|
| Price guidance: | Treasuries plus 115 bps area, plus or minus 5 bps
|
| Call feature: | Make-whole call at Treasuries plus 20 bps
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