Actavis to price around $20 billion of bonds in nine parts Tuesday to fund Allergan acquisition

By Aleesia Forni

Virginia Beach, March 2 – Actavis Funding SCS is in the market with a nine-part offering of senior notes (Baa3/BBB-/BBB-), according to market sources and a 424B5 filed with the Securities and Exchange Commission.

The deal’s size is expected to be around $20 billion.

The sale includes 18-month floating-rate notes talked in the 100 basis points area over Treasuries and two-year notes talked at 135 bps to 140 bps over Treasuries.

A three-year tranche of notes is talked at 145 bps to 150 bps over Treasuries, and a three-year floater is talked at the Libor equivalent.

There is also a five-year note talked at Treasuries plus 160 bps to 165 bps and a seven-year note talked at Treasuries plus 180 bps to 185 bps.

The company is talking a 10-year note in the 200 bps area over Treasuries, a 20-year note at the Treasuries plus 220 bps area and a 30-year note in the area of 240 bps over Treasuries.

The deal is expected to price on Tuesday.

The notes are guaranteed by Warner Chilcott Ltd., Actavis Capital Sarl and Actavis, Inc.

J.P. Morgan Securities LLC, Mizuho Securities (USA) Inc. and Wells Fargo Securities LLC are the bookrunners

Proceeds will be used to support the acquisition of Allergan, Inc.

Actavis is a pharmaceutical company with headquarters in Dublin. Irvine, Calif.-based Allergan is a multi-specialty health care company.

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