Glaxo launches $9 bln 4-part bond sale -lead

LONDON, May 6 (Reuters) - Drugmaker GlaxoSmithKline (GSK.L: Quote, Profile, Research) on Tuesday launched a $9 billion bond sale split into four parts with guidance at the tight end of initial expectations, an official at one of the lead managers said.

The bond sale has increased by 50 percent from the initial size of $6 billion indicated earlier on Tuesday, which along with the revised price guidance is a sign of strong demand. Corporate bond sales have surged in recent weeks as confidence has built that the worst of the financial crisis may be over.

Glaxo plans to sell a $1 billion two-year floating-rate note paying Libor plus 62.5 basis points, the official said.

It also plans to sell a $2.5 billion five-year bond, a $2.75 billion 10-year bond and a $2.75 billion 30-year bond, all paying 173 basis points more than underlying Treasuries.

Citigroup, JP Morgan and Lehman Brothers are joint bookrunners.

(Reporting by Richard Barley)