Summary
AbbVie Inc. announced on November 12, 2019, that it has entered into a purchase agreement to issue and sell $30 billion in aggregate principal amount of senior unsecured notes. This significant debt offering is intended to fund a portion of the cash consideration for its previously announced acquisition of Allergan plc. The notes are being offered in various tranches with different maturity dates and interest rates, including floating rate notes and fixed-rate notes ranging in maturity from 2021 to 2049. The offering is expected to close on November 21, 2019, and is not contingent on the completion of the Allergan acquisition. However, if the acquisition is not consummated by January 30, 2021, AbbVie will be required to redeem all outstanding notes at a premium.
Key Highlights
- 1AbbVie priced a $30 billion offering of senior unsecured notes to finance its acquisition of Allergan.
- 2The notes are comprised of multiple tranches with varying maturity dates (2021-2049) and interest rates, including floating and fixed rates.
- 3The offering is a key step in securing financing for the cash component of the Allergan acquisition.
- 4The closing of the note offering is anticipated for November 21, 2019.
- 5The debt offering is independent of the Allergan acquisition's completion, but includes a redemption provision if the acquisition fails.
- 6AbbVie may be required to redeem all outstanding notes at 101% of their principal plus accrued interest if the Allergan acquisition does not close by January 30, 2021.