Summary
Eli Lilly and Company (LLY) announced on May 26, 2015, through an 8-K filing, its entry into an Underwriting Agreement to issue and sell a significant aggregate principal amount of Euro-denominated notes. This issuance includes €600,000,000 in 1.000% Notes due 2022, €750,000,000 in 1.625% Notes due 2026, and €750,000,000 in 2.125% Notes due 2030, totaling €2.1 billion. These notes are being issued under an existing indenture and are registered on a Form S-3. The anticipated closing date for the offering is June 2, 2015, with expected net proceeds of approximately €2,072,719,500 after underwriter discounts. This action indicates Lilly's strategy to access capital markets, potentially to fund operations, investments, or acquisitions, while diversifying its debt structure with long-term, fixed-rate Euro-denominated debt.
Key Highlights
- 1Eli Lilly issued €2.1 billion in senior notes across three tranches: 1.000% Notes due 2022 (€600M), 1.625% Notes due 2026 (€750M), and 2.125% Notes due 2030 (€750M).
- 2The offering is expected to close on June 2, 2015.
- 3The company anticipates net proceeds of approximately €2,072,719,500 after underwriter discounts.
- 4The issuance was registered on a Form S-3 filing, indicating a standard capital markets transaction.
- 5The notes are governed by an existing Indenture dated February 1, 1991, with Deutsche Bank Trust Company Americas as successor trustee.
- 6Lilly has the option to redeem the notes under certain conditions, including tax events or events of default.
- 7This move demonstrates Lilly's proactive capital management and access to international debt markets.