Summary
Eli Lilly and Company (LLY) filed an 8-K on November 5, 2019, reporting on the issuance and sale of new senior notes. The company entered into an underwriting agreement to issue €600,000,000 aggregate principal amount of 0.625% Notes due 2031 and €1,000,000,000 aggregate principal amount of 1.700% Notes due 2049. These offerings were registered on a Form S-3 registration statement. The net proceeds from the offering, expected to close on November 7, 2019, are approximately €1.58 billion after deducting underwriter discounts and before offering expenses. The company has outlined terms for potential early redemption of these notes, including events of default and specific tax events. This issuance signifies Lilly's strategy to raise capital, likely for general corporate purposes or to manage its debt structure.
Key Highlights
- 1Eli Lilly issued €600 million in 0.625% Notes due 2031.
- 2Eli Lilly issued €1 billion in 1.700% Notes due 2049.
- 3The total issuance amounts to €1.6 billion in senior notes.
- 4Net proceeds from the offering are expected to be approximately €1.58 billion.
- 5The offering was registered under a Form S-3 registration statement.
- 6The notes have provisions for redemption under specific conditions, including events of default and certain tax events.
- 7The offering was underwritten by a syndicate of financial institutions, including major global banks.