Actavis sets guidance for 10-part bond offering; pricing Tuesday; around $20 billion size eyed

By Aleesia Forni

Virginia Beach, March 3 – Actavis Funding SCS set price talk for a planned 10-part offering of senior notes (Baa3/BBB-/BBB-) on Tuesday, according to market sources.

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

The sale includes 18-month floating-rate notes guided in the 90 basis points area over Treasuries. Initial price talk was set in the 100 bps area over Treasuries.

A two-year tranche of notes is guided at 120 bps to 125 bps over Treasuries, tightening from initial price talk of 135 bps to 140 bps over Treasuries.

A three-year tranche of notes is guided at 130 bps to 135 bps over Treasuries having firmed from earlier talk set at 145 bps to 150 bps over Treasuries.

The company is planning to price a three-year floater guided at the Libor equivalent to the three-year fixed-rate notes.

There is also a five-year note guided at 140 bps to 145 bps over Treasuries. Initial price talk was set at Treasuries plus 160 bps to 165 bps over Treasuries.

A five-year floating-rate note was added following the deal’s announcement on Monday. The note is guided at the Libor equivalent to the five-year fixed-rate note.

A seven-year note is guided in the 160 bps area, tightening from initial talk set at Treasuries plus 180 bps to 185 bps.

The company set guidance for a 10-year note in the 180 bps area following initial talk in the 200 bps area over Treasuries.

A 20-year note is guided in the area of 195 bps over Treasuries. Initial talk was set at the Treasuries plus 220 bps area.

Finally, price guidance for a planned 30-year tranche is set in the 215 bps area. The notes were initially talked 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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