By Cristal Cody
Chicago, Feb. 22 – AstraZeneca Finance LLC priced $5 billion of guaranteed notes (A2/A) on Wednesday in four parts, according to an FWP filed with the Securities and Exchange Commission and details from a market source.
The notes will be guaranteed by AstraZeneca plc.
The first two tranches are sized at $1.25 billion.
A three-year note priced with a 4.8% coupon at 99.832 to yield 4.861%, or at Treasuries plus 42 basis points. Price talk was in the Treasuries plus 65 bps area.
The second tranche, a five-year note, priced with a 4.85% coupon at 99.895 to yield 4.874%, or at Treasuries plus 57 bps, versus spread talk in the 80 bps area.
Stepping up to a seven-year tenor, the third tranche was the smallest. The $1 billion note priced with a 4.9% coupon at 99.684 to yield 4.954%, or at Treasuries plus 62 bps. Talk had the notes coming in the Treasuries plus 85 bps area.
The longest tranche is $1.5 billion of 5% notes due 2034. The notes were discounted to 99.634 to yield 5.047%, or priced at Treasuries plus 72 bps. Spread talk was wider at the 95 bps area.
All of the notes are callable with make-whole premiums initially. For the first three tranches the premium is based on Treasuries plus 10 bps. The last premium is Treasuries plus 15 bps. The notes also have par call options. The first two tranches have one-month par calls. The third tranche has a two-month par call. The fourth tranche has a three-month par call.
Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC led the sale. SEB Securities, Inc. and SG Americas Securities, LLC were also listed as bookrunners.
Proceeds will be used for general corporate purposes, which may include the refinancing of existing debt, including outstanding debt under bank facilities.
AstraZeneca is a Cambridge, U.K.-based pharmaceutical company.
| Issuer: | AstraZeneca Finance LLC
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| Guarantor: | AstraZeneca plc
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| Amount: | $5 billion
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| Issue: | Notes
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| Bookrunners: | Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, SEB Securities, Inc. and SG Americas Securities, LLC
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| Co-managers: | BofA Securities, Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, Santander US Capital Markets LLC, Blaylock Van, LLC, Cabrera Capital Markets LLC, C.L. King & Associates, Inc. and Stern Brothers & Co.
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| Trustee: | Bank of New York Mellon
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| Counsel to issuer: | Freshfields Bruckhaus Deringer US LLP
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| Counsel to underwriters: | Simpson Thacher & Bartlett LLP
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| Trade date: | Feb. 21
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| Settlement date: | Feb. 26
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| Ratings: | Moody’s: A2
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| S&P: A
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| Distribution: | SEC registered
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|
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| Three-year notes
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| Amount: | $1.25 billion
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| Maturity: | Feb. 26, 2027
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| Coupon: | 4.8%
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| Price: | 99.832
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| Yield: | 4.861%
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| Spread: | Treasuries plus 42 bps
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| Call features: | Make-whole call at Treasuries plus 10 bps; starting Jan. 26, 2027 at par
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| Price talk: | Treasuries plus 65 bps area
|
| Cusip: | 04636NAK9
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|
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| Five-year notes
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| Amount: | $1.25 billion
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| Maturity: | Feb. 26, 2029
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| Coupon: | 4.85%
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| Price: | 99.895
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| Yield: | 4.874%
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| Spread: | Treasuries plus 57 bps
|
| Call features: | Make-whole call at Treasuries plus 10 bps; starting Jan. 26, 2029 at par
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| Price talk: | Treasuries plus 80 bps area
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| Cusip: | 04636NAL7
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|
|
| Seven-year notes
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| Amount: | $1 billion
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| Maturity: | Feb. 26, 2031
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| Coupon: | 4.9%
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| Price: | 99.684
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| Yield: | 4.954%
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| Spread: | Treasuries plus 62 bps
|
| Call features: | Make-whole call at Treasuries plus 10 bps; starting Dec. 26, 2030 at par
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| Price talk: | Treasuries plus 85 bps area
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| Cusip: | 04636NAM5
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|
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| 10-year notes
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| Amount: | $1.5 billion
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| Maturity: | Feb. 26, 2034
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| Coupon: | 5%
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| Price: | 99.634
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| Yield: | 5.047%
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| Spread: | Treasuries plus 72 bps
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| Call features: | Make-whole call at Treasuries plus 15 bps; starting Nov. 26, 2033 at par
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| Price talk: | Treasuries plus 95 bps area
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| Cusip: | 04636NAN3
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