Nov 5 (IFR) - AbbVie Inc has launched the biggest ever
dollar-denominated debt issue in the US high-grade market,
raising $14.7 billion in a six-part deal that will price later
AbbVie, which will house Abbott's proprietary
pharmaceuticals business as part of the company's plan to split
into two, is selling three-year fixed-rate, three-year
floating-rate, five-year, six-year, 10-year and 30-year notes.
The "old" Abbott will focus on the company's medical
devices, diagnostics and nutritional product businesses.
Barclays, Bank of America Merrill Lynch, JP Morgan, Morgan
Stanley, BNP Paribas and Societe Generale are active bookrunners
on the Baa1/A rated deal.
Proceeds will be used to make a cash distribution to Abbott,
as provided by the terms of the separation agreement, pay
related fees and expenses, and for general corporate purposes.
Abbott last week said it had commenced a cash tender
offering for $7.7 billion in outstanding notes.
The previous record for a dollar-denominated deal was held
by two other pharmaceuticals companies; Roche, which
sold a $13.5 billion five-part deal in February, 2009; and
Pfizer Inc, which issued a $13.5 billion four-part deal
in March, 2009.
The Roche deal included a $3 billion one-year floater, which
is too short a maturity to be counted toward the total.
GE Capital is in second position with an $11 billion
three-part deal from March 2002, followed by WorldCom's $10.1
billion three-part deal from May, 2001.
The AbbVie deal also eclipses the $9.8 billion four-part
deal brought by United Technologies in May of 2012, until now,
the biggest deal of the year.
AbbVie is selling $3.5 billion of three-year fixed-rated
notes, launched at price guidance of Treasuries plus 90 basis
points (bp) area, $500 million of three-year floating-rate notes
at Libor plus 76bp, $4 billion of five-year notes at Treasuries
plus 110bp, $1 billion of six-year notes at Treasuries plus
140bp, $3.1 billion of 10-year notes at Treasuries plus 130bp
and $2.6 billion of 30-year notes at Treasuries plus 160bp.