Chicago, May 7 – Zoetis Inc. priced a $1.25 billion offering of senior notes (Baa1/BBB) in two parts, according to an FWP filed with the Securities and Exchange Commission.
Thursday’s sale included a $750 million tranche of 2% 10-year senior notes, which priced at 99.343 to yield 2.073%, or Treasuries plus 145 basis points.
The transaction also included a $500 million issue of 3% 30-year senior notes, which priced at 98.905 to yield 3.056%, or 175 bps over Treasuries.
Talk for the 10-year notes was in the 185 bps spread area, and the 30-year notes were talked at the 215 bps spread area.
Barclays, BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG, BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and TD Securities (USA) LLC are the joint bookrunning managers.
The notes will be putable at 101 upon a change of control.
Proceeds will be used for general corporate purposes, including working capital, capital expenditures, acquisitions and the refinancing of existing debt.
Zoetis is an animal medicine and vaccine company based in Parsippany, N.J.
| Issuer: | Zoetis Inc.
|
| Issue: | Senior notes
|
| Amount: | $1.25 billion
|
| Bookrunners: | Barclays, BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG, BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and TD Securities (USA) LLC
|
| Senior co-managers: | Rabo Securities USA Inc. and Standard Chartered Bank
|
| Co-managers: | Loop Capital Markets LLC and Wells Fargo Securities LLC
|
| Change-of-control put: | 101%
|
| Trade date: | May 7
|
| Settlement date: | May 12
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| 2030 notes
|
| Amount: | $750 million
|
| Maturity: | May 15, 2030
|
| Coupon: | 2%
|
| Price: | 99.343
|
| Yield: | 2.073%
|
| Spread: | Treasuries plus 145 bps
|
| Make-whole call: | Treasuries plus 25 bps prior to Feb. 15, 2030, then callable at par
|
| Price guidance: | Treasuries plus 185 bps spread area
|
|
|
| 2050 notes
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| Amount: | $500 million
|
| Maturity: | May 15, 2050
|
| Coupon: | 3%
|
| Price: | 98.905
|
| Yield: | 3.056%
|
| Spread: | Treasuries plus 175 bps
|
| Make-whole call: | Treasuries plus 30 bps prior to Nov. 15, 2049, then callable at par
|
| Price guidance: | Treasuries plus 175 bps area
|
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