Chicago, May 25 – AstraZeneca plc sold $7.25 billion of notes in six tranches on Tuesday, a market source informed Prospect News.
Two tranches off notes are being issued by AstraZeneca plc. The issuer sold $1.4 billion of 0.35% notes due May 26, 2023 with a spread of 20 basis points over Treasuries, low to talk in the 40 bps area.
A second tranche, the longest-dated tranche of the entire offering, came sized at $1 billion with a 3% coupon and a maturity date of May 28, 2051. Pricing with a Treasuries plus 80 bps spread, the notes came low to talk in the Treasuries plus 115 bps to 120 bps area.
The other four tranches are being issued by AstraZeneca Finance LLC and are guaranteed by AstraZeneca plc.
The issuer sold:
• $1.6 billion of 0.7% three-year notes with a spread of 40 bps over Treasuries, low to the Treasuries plus 55 bps area talk;
• $1.25 billion of 1.2% five-year notes with a Treasuries plus 45 bps spread, low to talk in the Treasuries plus 65 bps area;
• $1.25 billion of 1.75% seven-year notes with a Treasuries plus 55 bps spread, low to talk in the 80 bps area; and
• $750 million of 2.25% 10-year notes with a Treasuries plus 70 bps spread; lower than talk in the Treasuries plus 100 bps area.
The market is also expecting a floating-rate tranche due May 28, 2023.
The company may redeem the notes of any series, in whole or in part, from time to time. The notes are also redeemable in whole, but not in part, upon the occurrence of certain tax events.
Joint bookrunners for the offering are Goldman Sachs & Co. LLC, J.P. Morgan Securities and Morgan Stanley.
The proceeds from the 2023 notes, the 2051 notes, and the AstraZeneca Finance 2026 notes, 2028 notes and 2031 notes, referred to as the special mandatory redemption notes, will be used to fund a portion of the purchase price for the acquisition of Alexion Pharmaceuticals Inc., pursuant to a plan of merger entered into on Dec. 12, 2020. The proceeds will also be used pay or refinance a portion of Alexion’s debt and related fees and expenses, with any remaining proceeds for general corporate purposes, which may include debt refinancing.
The proceeds of the AstraZeneca Finance 2024 notes and floating-rate notes will be used to fund a portion of the purchase price for the Alexion acquisition, to pay or refinance a portion of Alexion’s debt and to pay related fees and expenses, should the acquisition proceed, or for general corporate purposes, which may include the refinancing of existing debt.
AstraZeneca may temporarily invest funds that are not immediately needed for these purposes in short-term investments, including marketable securities. The offering is not conditioned upon the consummation of the Alexion acquisition. However, if the acquisition does not occur on or before March 12, 2022 the company will be required to redeem the special mandatory redemption notes outstanding at 101% of the principal amount plus accrued and unpaid interest.
The company intends to list the notes on the Nasdaq stock market.
The biopharmaceutical company is based in Cambridge, U.K.
| Issuers: | AstraZeneca plc and AstraZeneca Finance LLC
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| Issue: | Notes
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| Amount: | $7.25 billion
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| Bookrunners: | Goldman Sachs & Co. LLC, J.P. Morgan Securities and Morgan Stanley
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| Trade date: | May 25
|
|
|
| 2023 notes
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| Issuer: | AstraZeneca plc
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| Amount: | $1.4 billion
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| Maturity: | May 26, 2023
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| Coupon: | 0.3%
|
| Spread: | Treasuries plus 20 bps
|
| Price talk: | Treasuries plus 40 bps area
|
|
|
| 2024 notes
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| Issuer: | AstraZeneca Finance LLC
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| Guarantor: | AstraZeneca plc
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| Amount: | $1.6 billion
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| Maturity: | May 28, 2024
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| Coupon: | 0.7%
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| Spread: | Treasuries plus 40 bps
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| Price talk: | Treasuries plus 55 bps area
|
|
|
| 2026 notes
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| Issuer: | AstraZeneca Finance LLC
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| Guarantor: | AstraZeneca plc
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| Amount: | $1.25 billion
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| Maturity: | May 28, 2026
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| Coupon: | 1.2%
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| Spread: | Treasuries plus 45 bps
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| Price talk: | Treasuries plus 65 bps area
|
|
|
| 2028 notes
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| Issuer: | AstraZeneca Finance LLC
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| Guarantor: | AstraZeneca plc
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| Amount: | $1.25 billion
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| Maturity: | May 28, 2028
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| Coupon: | 1.75%
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| Spread: | Treasuries plus 55 bps
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| Price talk: | Treasuries plus 80 bps area
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|
|
| 2031 notes
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| Issuer: | AstraZeneca Finance LLC
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| Guarantor: | AstraZeneca plc
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| Amount: | $750 million
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| Maturity: | May 28, 2031
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| Coupon: | 2.25%
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| Spread: | Treasuries plus 70 bps
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| Price talk: | Treasuries plus 100 bps area
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| 2051 notes
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| Issuer: | AstraZeneca plc
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| Amount: | $1 billion
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| Maturity: | May 28, 2051
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| Coupon: | 3%
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| Spread: | Treasuries plus 80 bps
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| Price talk: | Treasuries plus 115 bps to 120 bps area
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