8-KOther EventsExhibits & Filings

ELI LILLY & Co 8-K Report, Corporate Update (Aug 21, 2020)

Filed August 21, 2020For Securities:LLY

Summary

Eli Lilly and Company (LLY) announced on August 20, 2020, the execution of an Underwriting Agreement to issue and sell a significant amount of long-term debt. The company is raising approximately $1.1 billion in net proceeds through the sale of $850 million in 2.500% Notes due 2060 and $250 million in 2.250% Notes due 2050. The issuance of the 2050 Notes will create a fungible series with existing 2.250% notes due 2050, bringing the total outstanding amount for that series to $1.25 billion.

Key Highlights

  • 1LLY is raising approximately $1.1 billion in net proceeds through a debt offering.
  • 2The debt offering consists of $850 million of 2.500% Notes due 2060.
  • 3The debt offering also includes $250 million of 2.250% Notes due 2050, which will be fungible with an existing series.
  • 4The total outstanding principal amount for the 2.250% Notes due 2050 will increase to $1.25 billion upon closing.
  • 5The offering is expected to close on August 25, 2020.
  • 6The company entered into an Underwriting Agreement with several prominent financial institutions.
  • 7The notes are registered under a Form S-3 registration statement.

Frequently Asked Questions

The filing does not explicitly state the purpose of the debt issuance. However, companies typically issue debt to fund operations, capital expenditures, research and development, acquisitions, or to refinance existing debt. Investors should look for further disclosures or company statements for specific use of proceeds.

Eli Lilly is issuing $850 million of 2.500% Notes due 2060 and $250 million of 2.250% Notes due 2050. The 2060 Notes mature on September 15, 2060, and the 2050 Notes mature on May 15, 2050. Both series accrue interest semi-annually. The 2050 Notes will be fungible with the company's existing 2.250% notes due 2050.

The offering of the Notes is expected to close on August 25, 2020. The net proceeds, after deducting underwriting discounts but before other expenses, are estimated to be approximately $1.07 billion.

The company is issuing a total of $1.1 billion in aggregate principal amount of Notes, comprising $850 million of 2.500% Notes due 2060 and $250 million of 2.250% Notes due 2050.