Published on 8/7/2020 in the Prospect News Investment Grade Daily.
New Issue: Regeneron Pharmaceuticals prices $2 billion of senior notes in two tranches
By Cristal Cody
Tupelo, Miss., Aug. 7 – Regeneron Pharmaceuticals, Inc. sold $2 billion of fixed-rate senior notes (Baa3/BBB+) in two tranches on Friday, according to a market source and an FWP filing with the Securities and Exchange Commission.
A $1.25 billion offering of 1.75% 10-year notes priced at 99.898 to yield 1.761%, or a spread of Treasuries plus 120 basis points.
Price talk on the notes was in the Treasuries plus 140 bps area.
Regeneron sold $750 million of 2.8% 30-year notes at 99.715 to yield 2.814%.
The notes priced with a spread of 160 bps over Treasuries, tighter than initial guidance at the 180 bps spread area.
Goldman Sachs & Co. LLC, BofA Securities Inc. and J.P. Morgan Securities LLC were the joint lead bookrunners on both tranches.
Proceeds will be used, with cash on hand if necessary, to repay $1.5 billion of loans under the company’s credit agreement and the remainder, if any, for other general corporate purposes.
Regeneron is a Tarrytown, N.Y.-based biopharmaceutical company.
| Issuer: | Regeneron Pharmaceuticals, Inc.
|
| Amount: | $2 billion
|
| Description: | Senior notes
|
| Trade date: | Aug. 7
|
| Settlement date: | Aug. 12
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB+
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Sept. 15, 2030
|
| Joint lead bookrunners: | Goldman Sachs & Co. LLC, BofA Securities Inc. and J.P. Morgan Securities LLC
|
| Bookrunners: | U.S. Bancorp Investments, Inc., Barclays and Citigroup Global Markets Inc.
|
| Senior co-managers: | Fifth Third Securities, Inc. and MUFG
|
| Co-managers: | Citizens Capital Markets, Inc., Loop Capital Markets LLC, PNC Capital Markets LLC and the Governor and Company of the Bank of Ireland
|
| Coupon: | 1.75%
|
| Price: | 99.898
|
| Yield: | 1.761%
|
| Spread: | Treasuries plus 120 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps before June 15, 2030; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 140 bps area
|
|
|
| 30-year notes
|
| Amount: | $750 million
|
| Maturity: | Sept. 15, 2050
|
| Joint lead bookrunners: | Goldman Sachs & Co. LLC, BofA Securities Inc. and J.P. Morgan Securities LLC
|
| Bookrunners: | U.S. Bancorp Investments, Inc., Fifth Third Securities, Inc. and MUFG
|
| Senior co-managers: | Barclays and Citigroup Global Markets Inc.
|
| Co-managers: | Citizens Capital Markets, Inc., Loop Capital Markets LLC, PNC Capital Markets LLC and the Governor and Company of the Bank of Ireland
|
| Coupon: | 2.8%
|
| Price: | 99.715
|
| Yield: | 2.814%
|
| Spread: | Treasuries plus 160 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps before March 15, 2050; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 180 bps area
|
|
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