AstraZeneca launches and prices a $6.9 billion bond issue
AstraZeneca PLC, rated A1 (stable) by Moodyâ€™s and AA- (stable) by Standard & Poorâ€™s, yesterday announced a successful global bond market transaction issuing a total of $6.9 billion. The proceeds of the issue will be used to repay a significant portion of the outstanding US commercial paper taken on in connection with the acquisition of MedImmune.
The transaction is an SEC registered global offering consisting of the following tranches:
$650 million of 2-year floating rate notes with a coupon of 3m$Libor+30bps
$1,750 million of 5-year fixed rate notes with a coupon of 5.40%
$1,750 million of 10-year fixed rate notes with a coupon of 5.90%
$2,750 million of 30-year fixed rate notes with a coupon of 6.45%
â€œThis transaction represents part of our refinancing of the acquisition of MedImmune Inc and enables us to enhance our financial flexibility by diversifying our sources of funding. We are delighted by the investor reception for AstraZeneca in the bond marketsâ€ said David Brennan, Chief Executive Officer of AstraZeneca.
The bonds will be issued under an automatic shelf registration statement on Form F-3, which AstraZeneca PLC filed with the US Securities and Exchange Commission (the â€œSECâ€) on August 31, 2007. Such registration statement provides for the offer and sale from time to time of an indeterminate amount of AstraZeneca PLCâ€™s debt securities. In addition, on 31 August 2007, AstraZeneca PLC also furnished to the SEC a report on Form 6-K, which included its interim consolidated results for the six month period ended 30 June 2007 as well as certain pro forma financial information relating to the MedImmune acquisition and which report, among others, is incorporated by reference into such registration statement.
AstraZeneca is a major international healthcare business engaged in the research, development, manufacture and marketing of prescription pharmaceuticals and the supply of healthcare services. It is one of the world's leading bio-pharmaceutical companies with healthcare sales of $26.47 billion and leading positions in sales of gastrointestinal, cardiovascular, neuroscience, respiratory, oncology and infection products. AstraZeneca is listed in the Dow Jones Sustainability Index (Global) as well as the FTSE4Good Index.
This press release contains forward-looking statements, in the first and third paragraphs. Such statements may be subject to risks and uncertainties that could cause the actual results to differ materially from these statements. We refer you to AstraZenecaâ€™s publicly available filings with the SEC for information about these and other risks and uncertainties. AstraZeneca assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors. This release does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer, to purchase or subscribe for any ordinary shares in, or securities of, AstraZeneca PLC, nor shall it form the basis of, or be relied on in connection with any contract therefore.