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AbbVie brings biggest-ever USD debt issue to high-grade market
November 5, 2012 / 7:14 PM / 5 years ago

AbbVie brings biggest-ever USD debt issue to high-grade market

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 on Monday.

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.

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