Pfizer 2009 Annual Report Download - page 72

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Notes to Consolidated Financial Statements
Pfizer Inc. and Subsidiary Companies
D. Long-Term Debt
We issued long-term debt in the first and second quarters of 2009, virtually all of the proceeds of which were used to partially
finance our acquisition of Wyeth on October 15, 2009. Also, our long-term debt increased due to the addition of an aggregate
principal amount of $10.3 billion of legacy Wyeth debt. On October 30, 2009, Pfizer Inc. issued an unconditional and irrevocable
guarantee of the prompt payment, when due, of any amounts owed in respect of an aggregate principal amount of $10.3 billion of
such debt. The guarantee is an unsecured unsubordinated obligation of Pfizer Inc. The legacy Wyeth debt has a weighted-average
maturity of approximately 11 years, ranging from 2011 through 2037. Additional information about our long-term debt, including
legacy Wyeth debt follows:
MATURITY
DATE
AS OF DECEMBER 31,
(MILLIONS OF DOLLARS) 2009 2008
Senior unsecured notes:
Issued on March 24, 2009:
4.45%(a) March 2012 $ 3,510 $—
6.20%(a) March 2019 3,247 —
5.35%(a) March 2015 2,997 —
7.20%(a) March 2039 2,455 —
Floating rate notes at the three-month London Interbank Offering Rate (LIBOR),
plus 1.95% March 2011 1,250 —
Issued on June 3, 2009:
4.75% euro(b) June 2016 2,867 —
5.75% euro(b) June 2021 2,865 —
3.625% euro(b) June 2013 2,653 —
6.50% U.K. pound(b) June 2038 2,408 —
Legacy Wyeth debt:
5.95% April 2037 2,091 —
5.50% February 2014 1,912 —
5.50% March 2013 1,617 —
6.95% March 2011 1,570 —
5.50% February 2016 1,087 —
Notes and other debt with a weighted-average interest rate of 6.21%(c) 2011–2036 2,869 —
Other:
4.55% euro May 2017 1,391 1,312
4.75% euro December 2014 1,385 1,311
Debentures, notes, borrowings and mortgages with a weighted-average interest
rate of approximately 4.17%(d) 2011–2028 5,019 5,340
Total long-term debt $43,193 $7,963
Current portion not included above $27 $ 937
(a) Instrument is callable by us at any time at the greater of 100% of the principal amount or the sum of the present values of the remaining scheduled
payments of principal and interest discounted at the U.S. Treasury rate plus 0.50% plus, in each case, accrued and unpaid interest.
(b) Instrument is callable by us at any time at the greater of 100% of the principal amount or the sum of the present values of the remaining scheduled
payments of principal and interest discounted at a comparable government bond rate plus 0.20% plus accrued and unpaid interest.
(c) The weighted-average maturity of all other debt issuances is approximately 17 years.
(d) The weighted-average maturity of all other debt issuances is approximately 8 years.
Long-term debt outstanding as of December 31, 2009 matures in the following years:
(MILLIONS OF DOLLARS) 2011 2012 2013 2014
AFTER
2014
Maturities $4,137 $3,522 $4,278 $4,125 $27,131
In March 2007, we filed a securities registration statement with the U.S. Securities and Exchange Commission (SEC). The
registration statement was filed under the automatic shelf registration process available to “well-known seasoned issuers” and
expires in March 2010. We can issue securities of various types under that registration statement at any time, subject to approval by
our Board of Directors in certain circumstances. On March 24, 2009, in order to partially finance our acquisition of Wyeth, we issued
$13.5 billion of senior unsecured notes under this registration statement. On June 3, 2009, also in order to partially finance the
Wyeth acquisition, we issued approximately $10.5 billion of senior unsecured notes in a private placement pursuant to Regulation S
under the Securities Act of 1933, as amended (Securities Act of 1933). The notes have not been and will not be registered under the
Securities Act of 1933 and, subject to certain exceptions, may not be sold, offered or delivered within the United States or to, or for,
the account or benefit of U.S. persons.
70 2009 Financial Report