By Andrea Heisinger
New York, March 9 - Novartis Capital Corp. sold an upsized $5 billion of senior unsecured notes (Aa2/AA-/) in three tranches on Tuesday, an informed source said.
The size was increased from an announced $4 billion.
A $2 billion tranche of 1.9% three-year notes sold at 99.867 to yield 1.944% with a spread of Treasuries plus 55 basis points. The notes were priced at the tight end of guidance in the range of 55 to 57 bps.
A tranche of $2 billion in 2.9% five-year notes priced at 99.522 to yield 3.001%, or Treasuries plus 65 bps. Price talk was in the 67 bps area.
A third tranche of $1 billion in 4.4% 10-year notes priced at 99.237 to yield 4.494%, or 78 bps over Treasuries. This was at the tight end of guidance in the 80 bps area.
The deal is guaranteed by parent company Novartis AG.
Goldman Sachs & Co. and J.P. Morgan Securities were active bookrunners. Barclays Capital, Bank of America Merrill Lynch, Citigroup Global Markets and Morgan Stanley & Co. were passive bookrunners.
Proceeds are going to intercompany finance purposes in connection with a pending acquisition of Alcon and for general corporate purposes.
The financing subsidiary of the pharmaceutical and health care company is based in Basel, Switzerland.
| Issuer: | Novartis Capital Corp.
|
| Issue: | Senior unsecured notes
|
| Guarantor: | Novartis AG
|
| Amount: | $5 billion, increased from $4 billion
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities (active), Barclays Capital, Bank of America Merrill Lynch, Citigroup Global Markets, Morgan Stanley & Co. (passive)
|
| Trade date: | March 9
|
| Settlement date: | March 16
|
| Ratings: | Moody's: Aa2
|
| Standard & Poor's: AA-
|
|
|
| Three-year notes
|
| Amount: | $2 billion
|
| Maturity: | March 24, 2013
|
| Coupon: | 1.9%
|
| Price: | 99.867
|
| Yield: | 1.944%
|
| Spread: | Treasuries plus 55 bps
|
| Price talk: | 55-57 bps
|
|
|
| Five-year notes
|
| Amount: | $2 billion
|
| Maturity: | March 24, 2015
|
| Coupon: | 2.9%
|
| Price: | 99.522
|
| Yield: | 3.001%
|
| Spread: | Treasuries plus 65 bps
|
| Price talk: | 67 bps area
|
|
|
| 10-year bonds
|
| Amount: | $1 billion
|
| Maturity: | March 24, 2020
|
| Coupon: | 4.4%
|
| Price: | 99.237
|
| Yield: | 4.494%
|
| Spread: | Treasuries plus 78 bps
|
| Price talk: | 80 bps area
|
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