By Andrea Heisinger
New York, Jan. 16 - Zoetis Inc. was in Wednesday's market with a $3.65 billion sale of senior notes (Baa2/BBB-/) in four tranches, a market source said.
It was the first bond offering for the issuer.
A $400 million tranche of 1.15% three-year notes sold at 99.973 to yield 1.159% with a spread of Treasuries plus 80 basis points. Pricing was tighter than talk in the 125 bps area.
The $750 million of 1.875% five-year notes priced at 99.943 to yield 1.887% with a spread of 115 bps over Treasuries. The tranche sold tighter than talk in the 150 bps area.
There was $1.35 billion of 3.25% 10-year notes priced at 99.89 to yield 3.263% with a spread of Treasuries plus 145 bps. Pricing was tighter than guidance in the 175 bps area.
Finally, a $1.15 billion tranche of 4.7% 30-year bonds sold at 99.268 to yield 4.746% with a spread of Treasuries plus 175 bps. The bonds were also priced lower than talk in the 205 bps area.
Pricing was done via Rule 144A and Regulation S.
Bank of America Merrill Lynch, Barclays and J.P. Morgan Securities LLC were the bookrunners.
Zoetis is an animal health subsidiary of Pfizer Inc., based in New York City.
| Issuer: | Zoetis Inc.
|
| Issue: | Senior notes
|
| Amount: | $3.65 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Barclays, J.P. Morgan Securities LLC
|
| Distribution: | Rule 144A, Regulation S
|
| Trade date: | Jan. 16
|
| Settlement date: | Jan. 28
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB-
|
|
|
| Three-year notes
|
| Amount: | $400 million
|
| Maturity: | Feb. 1, 2016
|
| Coupon: | 1.15%
|
| Price: | 99.973
|
| Yield: | 1.159%
|
| Spread: | Treasuries plus 80 bps
|
| Price talk: | 125 bps area
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | Feb. 1, 2018
|
| Coupon: | 1.875%
|
| Price: | 99.943
|
| Yield: | 1.887%
|
| Spread: | Treasuries plus 115 bps
|
| Price talk: | 150 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.35 billion
|
| Maturity: | Feb. 1, 2023
|
| Coupon: | 3.25%
|
| Price: | 99.89
|
| Yield: | 3.263%
|
| Spread: | Treasuries plus 145 bps
|
| Price talk: | 175 bps area
|
|
|
| 30-year bonds
|
| Amount: | $1.15 billion
|
| Maturity: | Feb. 1, 2043
|
| Coupon: | 4.7%
|
| Price: | 99.268
|
| Yield: | 4.746%
|
| Spread: | Treasuries plus 175 bps
|
| Price talk: | 205 bps area
|
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