GlaxoSmithKline Sells $3 Billion in First U.S. Bonds Since May

GlaxoSmithKline Plc (GSK), the U.K.’s largest drugmaker, issued $3 billion in its first dollar- denominated bond sale in more than 10 months.

Glaxo’s $1.25 billion of 0.7 percent, three-year debt yields 35 basis points more than similar-maturity Treasuries, a $1.25 billion portion of 2.8 percent, 10-year securities pay a relative yield of 90 basis points and a $500 million piece of 4.2 percent, 30-year debentures have a 105 basis-point spread, according to data compiled by Bloomberg.

The bonds may be rated A1 by Moody’s Investors Service, according to a person familiar with the transaction, who asked not to be identified citing lack of authorization to speak publicly. The company scrapped a three-year floating-rate note portion, which it had considered selling earlier today.

The company last sold dollar debt in May, issuing $5 billion in three parts including $2 billion of 2.85 percent, 10- year bonds yielding 100 basis points more than benchmarks, Bloomberg data show. The bonds traded at 100.9 cents on the dollar to yield 2.74 percent yesterday, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

Deutsche Bank AG, Goldman Sachs Group Inc., JPMorgan Chase & Co. and UBS AG managed the offering for the London-based company, Bloomberg data show. Proceeds will be used for general corporate purposes, including debt refinancing.

To contact the reporter on this story: Sarika Gangar in New York at sgangar@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

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