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Pfizer’s acquisition of cancer-focused biotech Seagen would be its biggest since 2009.
Angela Weiss/AFP via Getty Images
Pharmaceutical giant
Pfizer
has priced the $31 billion debt offering it will use to fund its big bet on
Seagen,
the biotech group it agreed to acquire in what would be its biggest takeover since 2009.
Pfizer
(ticker: PFE) announced pricing Tuesday for eight tranches of notes—maturing between 2025 and 2063, with each tranche worth $3 billion to $6 billion—to fund its acquisition of
Seagen
(SGEN). The yields on the notes, which will be issued by a wholly owned investment subsidiary and fully guaranteed on a senior unsecured basis by Pfizer, range from 4.45% for the 2026 and 2028 tranche to 5.34% for the 2063 tranche.
The company expects the offering to close on May 19.
The pharma titan announced that it would buy the cancer-focused biotech in March in a cash deal worth $43 billion—but, as Barron’s has reported, the deal faces risks, including from an increasingly tough regulatory backdrop for healthcare deals.
Other than any issuance of 10-year and 30-year notes, the debt is expected to be subject to a special mandatory redemption at 101% of the aggregate principal under certain circumstances if the merger is terminated or doesn’t close by an agreed-to date.
Write to Jack Denton at [email protected]
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