Pfizer is raising $31B through a debt offering to fund its $43B acquisition of Seagen, which would be the company's most extensive offering since 2009.
According to a filing with the Securities and Exchange Commission, the offering is anticipated to close this Friday.
- The sale comes as businesses including Apple, T-Mobile, and Merck scramble to access the U.S. bond market before projected increases in borrowing costs due to the debt ceiling crisis.
- The pharmaceutical company will pay for the Seagen acquisition with eight tranches of notes with 2025–2063 maturities.
- The 10-year bonds issued by Pfizer are estimated to have a yield to maturity of approximately 4.75%, each worth between $3B and $6B.
- With Seagen's licensed medicines likely to generate almost $2B in combined sales in 2022, the Seagen acquisition is anticipated to boost Pfizer's range of cancer medications.
- In mid-March, Pfizer announced it would pay $43B to acquire cancer treatment innovator Seagen.