01—Abstract
Summary
Summary of the 8-K filed August 14, 2024. Cited figures are marked; the original filing is the authoritative source.
Eli Lilly and Company (LLY) has announced the successful issuance and sale of $4.75 billiona in aggregate principal amount of senior notes across multiple tranches, maturing between 2027 and 2064.
This significant debt offering, which closed on August 14, 2024, generated net proceeds of approximately $4.96 billionb after underwriting discounts. The company utilized this debt issuance to raise substantial capital, likely to support ongoing research and development, potential acquisitions, or general corporate purposes, aligning with its growth strategies in the pharmaceutical sector. Investors should note the diverse maturities and interest rates associated with these notes, ranging from 4.150% for the 2027 Notes to 5.200% for the 2064 Notes.
The company has established terms for potential redemption and has outlined conditions under which the principal could become immediately due and payable in the event of a default. This financing action is a key event for the company, demonstrating its ability to access capital markets efficiently.
02—Key points
Key Highlights
- Eli Lilly & Co. issued and sold $4.75 billion in aggregate principal amount of senior notes.
- The notes have staggered maturity dates ranging from 2027 to 2064.
- Interest rates on the notes vary from 4.150% (2027 Notes) to 5.200% (2064 Notes).
- The offering closed on August 14, 2024.
- Net proceeds from the issuance were approximately $4.96 billion.
- The debt issuance was registered under a Form S-3 registration statement.
- The company has outlined provisions for note redemption and default.
03—Questions
Frequently Asked Questions
What is the total amount of debt issued by Eli Lilly and Company in this filing?
Eli Lilly and Company issued a total of $4.75 billion in aggregate principal amount of senior notes.
What will the proceeds from this debt issuance be used for?
The filing does not specify the exact use of proceeds. However, such capital raises are typically used for general corporate purposes, funding research and development, potential acquisitions, or refinancing existing debt.
What are the interest rates and maturity dates for the new notes?
The notes have the following interest rates and maturity dates: 4.150% Notes due 2027, 4.200% Notes due 2029, 4.600% Notes due 2034, 5.050% Notes due 2054, and 5.200% Notes due 2064.
When did this debt offering close?
The offering of the notes closed on August 14, 2024.
04—Continue