TOP NEWS: AstraZeneca Prices USD3 Billion Global Bond Offer

(Alliance News) - AstraZeneca on Tuesday said it priced a three-tranche global bond offering ...

Alliance News 4 August, 2020 | 8:41AM
Email Form

(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

Copyright 2020 Alliance News Limited. All Rights Reserved.

Email Form

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
AstraZeneca PLC 8,759.55 GBX 1.29

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies