8-KOther Events

ELI LILLY & Co 8-K Report (Jul 12, 2001)

Filed July 12, 2001For Securities:LLY

Summary

Eli Lilly and Company filed an 8-K on July 11, 2001, reporting on an event that occurred on July 9, 2001. The primary purpose of this filing was to disclose the details of a significant debt financing transaction. The company entered into an underwriting agreement to issue and sell $400 million aggregate principal amount of its 5.50% Notes due 2006. This issuance represents a strategic move by Eli Lilly to raise capital, likely for general corporate purposes, potential acquisitions, research and development, or to refinance existing debt. The inclusion of the underwriting agreement and the form of the notes as exhibits provides transparency into the terms and conditions of this debt offering, which is crucial information for investors assessing the company's financial structure and leverage.

Key Highlights

  • 1Eli Lilly & Co. issued $400 million in aggregate principal amount of 5.50% Notes due 2006.
  • 2The notes were issued via an underwriting agreement dated July 9, 2001.
  • 3J.P. Morgan Securities Inc. was among the lead underwriters for this debt offering.
  • 4The filing includes the Form of Underwriting Agreement and the Form of the 5.50% Note Due 2006 as exhibits.
  • 5This transaction indicates Eli Lilly's active management of its capital structure and funding strategy.
  • 6The 5.50% interest rate on the notes provides a specific cost of debt for this issuance.

Frequently Asked Questions

The main purpose of this 8-K filing is to report on Eli Lilly and Company's issuance of $400 million in aggregate principal amount of its 5.50% Notes due 2006, including the related underwriting agreement and the form of the notes.

Eli Lilly issued 5.50% Notes due 2006. The aggregate principal amount of these notes is $400 million, and they carry a fixed interest rate of 5.50% per annum.

The underwriting syndicate included J.P. Morgan Securities Inc., Salomon Smith Barney Inc., Banc of America Securities LLC, Banc One Capital Markets, Inc., Mellon Financial Markets, LLC, and Merrill Lynch Pierce, Fenner & Smith, Incorporated.

This debt issuance signifies Eli Lilly's proactive approach to managing its capital structure. Raising $400 million indicates the company's need for capital, which could be for various strategic initiatives such as funding research and development, expanding operations, making acquisitions, or refinancing existing debt. Investors should consider this in conjunction with the company's overall debt levels and cash flow generation.