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Pharma & Biotech

AstraZeneca prices £691mln bond offering linked to Alexion Pharmaceuticalsacquisition

The notes must be redeemed before the maturity date if the deal doesn’t happen before March 2022 or if it gets scrapped

AstraZeneca PLC (LON:AZN) announced it has priced €800mln (£691mln) of fixed-rate notes related to the proposed acquisition of Alexion Pharmaceuticals, Inc.

They have a coupon of 0.375% maturing in 2029, but must be redeemed before the maturity date if the deal doesn’t happen before 12 March 2022 or if it gets scrapped.

READ: AstraZeneca's £27.5bn acquisition of Alexion under investigation by competition watchdog

The FTSE 100 group said it will use some of the money to fund the US$39bn (£27.5bn) transaction and related fees and expenses, as well as to pay some of Alexion’s debt.

Earlier this week, the UK Competition and Markets Authority (CMA) started an investigation into the acquisition to decide whether it would constitute a merger, which in turn could potentially lessen competition.

The pharma giant has already received approval in the US, Canada, Brazil, Russia but is still waiting for the green light from the EU and Japan.

The megadeal, announced in December, would allow the Anglo-Swedish group to boost its growing presence in immunology.

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