Summary
Eli Lilly and Company (LLY) announced on September 9, 2021, that it entered into an underwriting agreement to issue and sell a significant amount of senior notes. The offering includes €600 million of 0.500% Notes due 2033, €500 million of 1.125% Notes due 2051, €700 million of 1.375% Notes due 2061, and £250 million of 1.625% Notes due 2043. This debt issuance aims to raise capital for the company, with an expected closing date of September 14, 2021. The proceeds from these offerings, after underwriting discounts, are substantial, totaling approximately €596.3 million for the 2033 Notes, €485.7 million for the 2051 Notes, €680.0 million for the 2061 Notes, and £243.3 million for the 2043 Notes. These funds will likely support Lilly's ongoing research and development initiatives, pipeline expansion, or general corporate purposes, reflecting the company's strategic financial management to fuel future growth.
Key Highlights
- 1Eli Lilly issued new senior notes denominated in Euros and Pounds Sterling.
- 2Total aggregate principal amount of notes issued is approximately €1.8 billion and £250 million.
- 3The notes carry varying interest rates ranging from 0.500% to 1.625% per annum.
- 4Maturity dates for the notes range from 2033 to 2061, providing long-term financing.
- 5The offering is expected to close on September 14, 2021.
- 6Net proceeds are estimated to be approximately €1.76 billion and £243.3 million after underwriting discounts.
- 7The debt issuance is registered under a Form S-3 Registration Statement, indicating prior SEC review.