Pfizer (PFE) is planning to raise at least $5B through a U.S. dollar corporate bond offering to fund, among other things, its recently completed acquisition of obesity drugmaker Metsera, Bloomberg News reported on Tuesday, citing people familiar with the matter.
The New York-based pharma giant is seeking to sell debt in as many as seven parts, the people added, noting that initial prices for a 40-year bond, the longest portion, indicate a premium of about 1.25 percentage points above Treasuries.
Pfizer (PFE) has joined eight other borrowers looking to raise funds through investment-grade bonds on Tuesday, following a $26.3B fundraising a day earlier, driven by a $15B investment-grade bond offering from Amazon (AMZN).
Following a bitter bidding war with Danish drugmaker Novo Nordisk (NVO), the COVID-19 vaccine maker acquired Metsera (METS) for up to $10B, including an additional $20.65 per share in cash tied to contingent value rights.
The proceeds will also be used for general corporate purposes and to refinance PFE’s existing debt, according to sources.