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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowEli Lilly and Co. plans a $2.4 billion debt sale to repay the loans it used to acquire ImClone Systems Inc., Bloomberg News reported, citing an unnamed person familiar with the transaction.
Indianapolis-based Lilly bought New York-based ImClone for $6.3 billion in November.
Lilly plans to sell three batches of bonds, the person said. Lilly would sell $1 billion each in three-year and five-year notes. The company also plans to sell $400 million in the form of 28-year bonds, Bloomberg reported.
Bloomberg’s source said Lilly planned to offer interest on the bonds ranging from 2.37 to 2.5 percentage points higher than U.S. Treasury bills that mature in similar time frames.
According to a Lilly securities filing today, Credit Suisse Group AG, Deutsche Bank AG, UBS AG, Bank of America Corp. and Citigroup will manage the sale.
Lilly last issued debt in March 2007. At the end of 2008, the company had $5.9 billion in short-term borrowing, Bloomberg reported.
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