Bristol-Myers wraps oversubscribed tender offer for $500 million notes

By Susanna Moon

Chicago, May 27 – Bristol-Myers Squibb Co. said it settled tenders for $534.4 million of four series of notes in the oversubscribed offer that ended 11:59 p.m. ET on May 26.

The tally is as of the early deadline of 5 p.m. ET on May 11, and no more notes have been tendered since then.

The company said on May 12 that it had lifted the cap in the tender offer to $500 million principal amount from the $400 million originally announced.

Bristol-Myers settled the early tendered notes on May 13, with those for the fourth series on a prorated basis, with pricing as follows:

• All $202,307,000 of its $479,901,000 of 6.125% notes due May 1, 2038, or 42.16% of the outstanding amount. Pricing was set using a spread of 105 basis points over the 3% Treasury due Nov. 15, 2044, for a total purchase price of $1,305.11 per $1,000 principal amount of notes;

• All $221,422,000 of its $624,786,000 of 5.875% notes due Nov. 15, 2036, or 35.44% of the outstanding amount. Pricing was set using a spread of 100 bps over the 3% Treasury due Nov. 15, 2044, for a total amount of $1,265.72 per $1,000 principal amount of notes;

• All $73,647,000 of its 6.8% debentures due Nov. 15, 2026, or 22.34% of the outstanding amount. Pricing was set using a spread of 85 bps over the 2% Treasury due Feb. 15, 2025, for a total amount of $1,353.11 per $1,000 principal amount of notes; and

• $2,618,000 of the $304,150,000 of 7.15% debentures due June 15, 2023. Holders had tendered $37,018,000, or 12.17% of the outstanding amount. Pricing was set using a spread of 45 bps over the 2% Treasury due Feb. 15, 2025, for a total amount of $1,319.43 per $1,000 principal amount of notes.

The notes are listed in order of priority acceptance level.

Pricing was set at 2 p.m. ET on May 12.

The total purchase price includes an early tender premium of $30.00 per $1,000 principal amount of notes tendered by the early tender date.

Bristol-Myers will also pay accrued interest up to but excluding the settlement date.

Goldman Sachs & Co. (800 828-3182) and Morgan Stanley & Co. LLC (800 624-1808) are dealer managers. D.F. King & Co., Inc. (877 732-3617 or bmy@dfking.com) is tender agent and information agent.

Bristol-Myers is a New York-based biopharmaceutical company.

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