AstraZeneca announces USD7 billion bond sale to fund Alexion deal

(Alliance News) - AstraZeneca PLC on Wednesday announced it will sell USD7.00 billion in bonds to ...

Alliance News 26 May, 2021 | 8:59AM
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(Alliance News) - AstraZeneca PLC on Wednesday announced it will sell USD7.00 billion in bonds to fund the acquisition of Alexion Pharmaceuticals Inc.

The six-tranche offering of fixed rate notes is expected to close on Friday, the company said. Coupons range from 0.3% for bonds maturing in 2023, to 3.0% for bonds maturing in 2051.

AstraZeneca said it expects to use the proceeds to fund part of the purchase price for Alexion, pay or refinance Alexion's debt, and for general corporate purposes.

The Cambridge-based pharmaceutical firm is buying Boston, US-based biotech Alexion in a deal worth USD39 billion, announced in December. On Tuesday, the UK's Competition & Markets Authority said it was investigating the takeover.

USD5.40 billion of the bonds will be redeemed if the deal is not completed by March 2022. The remaining USD1.60 billion tranche of 2024 bonds is not subject to mandatory redemption.

AstraZeneca shares down 0.1% at 8,078.00 pence in London on Wednesday morning.

By Ivan Edwards; ivanedwards@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
AstraZeneca PLC 8,274.00 GBX 0.07
Alexion Pharmaceuticals Inc

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