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(Alliance News) - AstraZeneca on Tuesday said it priced a three-tranche global bond offering totalling USD3.00 billion, expected to close on Thursday.
The proceeds of the bond issue will be used for general corporate purposes which may include the refinancing of existing debts, the pharmaceutical company said.
AstraZeneca had net debt of GBP13.7 million at June 30, only slightly up from last year's GBP13.1 million.
The bond comes after AstraZeneca last week posted positive revenue growth in the six months ended June 30. The Cambridge-based company saw a 14% revenue increase in the half to USD12.63 billion from USD11.31 billion a year prior. Pretax profit was USD1.89 billion, doubled from USD899 million the year prior.
The bond offer is a global one registered with the US Securities Exchange Commission.
The three tranches are as follows: USD1.20 billion of fixed rate notes with a coupon of 0.7%, maturing April 8, 2026; USD1.30 billion of fixed rate notes with a coupon of 1.4%, maturing August 6, 2030; and USD500.0 million of fixed rate notes with a coupon of 2.1%, maturing August 6, 2050.
BofA Securities Inc, HSBC Securities Inc and Mizuho Securities USA LLC are acting as joint book-running managers. Barclays Capital Inc, Citigroup Global Markets Inc, Deutsche Bank Securities Inc, Goldman Sachs & Co LLC, JP Morgan Securities LLC and Morgan Stanley and Co LLC are co-managers on the transaction.
The bond issuance does not affect the company's guidance for 2020, it said.
AstraZeneca shares were down 2.0% at 8,591.00 pence each on Tuesday morning in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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