Summary
Eli Lilly and Company (LLY) announced on March 3, 2009, the completion of a significant debt offering, raising a total of $2.4 billion. This offering included the issuance of $1 billion in 3.550% Notes due 2012, $1 billion in 4.200% Notes due 2014, and $400 million in 5.950% Notes due 2037. These new notes were issued under an existing Indenture dated February 1, 1991, and the proceeds are intended to support the company's general corporate purposes. This move indicates Lilly's strategy to secure long-term financing at specific interest rates, potentially to manage its capital structure, fund ongoing operations, or support future growth initiatives. The filing details the underwriting agreement with a syndicate of reputable financial institutions, including Credit Suisse, Deutsche Bank, and UBS, underscoring the broad market confidence in Lilly's creditworthiness at the time. Investors should note the different maturities and coupon rates, which reflect prevailing market conditions and the company's debt management objectives.
Key Highlights
- 1Eli Lilly & Co. successfully issued $2.4 billion in aggregate principal amount of senior notes.
- 2The offering comprised three tranches: $1 billion of 3.550% Notes due 2012, $1 billion of 4.200% Notes due 2014, and $400 million of 5.950% Notes due 2037.
- 3The notes were issued under an existing Indenture dated February 1, 1991, with Deutsche Bank Trust Company Americas as Trustee.
- 4The company entered into an Underwriting Agreement with Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., and UBS Securities LLC as representatives for the underwriters.
- 5The stated purpose for the proceeds is for general corporate purposes.
- 6The filing includes various exhibits related to the underwriting agreement, indenture, officer's certificates, and legal opinions.