INDIANAPOLIS - Eli Lilly and Company (NYSE:LLY), a leading pharmaceutical firm with a market capitalization of $787.74 billion, has successfully issued $6 billion in new debt across six tranches with varying maturities ranging from 2028 to 2065. The company entered into an underwriting agreement on Monday with a consortium of banks for the sale of these notes. According to InvestingPro analysis, Eli Lilly maintains a moderate debt level with strong cash flows to cover interest payments.
The issuance includes $1 billion of 4.550% notes due in 2028, $1.25 billion of 4.750% notes due in 2030, $1 billion of 4.900% notes due in 2032, $1.25 billion of 5.100% notes due in 2035, $1.25 billion of 5.500% notes due in 2055, and $750 million of 5.600% notes due in 2065. Interest on these notes will be paid semi-annually. With an overall financial health score rated as "GOOD" by InvestingPro, the company demonstrates strong capacity to manage its debt obligations.
Eli Lilly has stated that the net proceeds from the offering, after the deduction of underwriting discounts and before the deduction of estimated offering expenses, are approximately $6.46 billion. The funds are expected to be used for general corporate purposes, which may include refinancing existing debt, funding for the company’s working capital, capital expenditures, or other corporate expenses.
The offering was conducted under an existing shelf registration statement and managed by Barclays (LON:BARC) Capital Inc., BofA Securities, Inc., Citigroup (NYSE:C) Global Markets Inc., Deutsche Bank (ETR:DBKGn) Securities Inc., and Goldman Sachs & Co. LLC.
The notes were issued under an indenture dated February 1, 1991, between Eli Lilly and Deutsche Bank Trust Company Americas, as trustee. According to the terms, Eli Lilly retains the option to redeem the notes at specified times and prices.
This financial move comes as Eli Lilly continues to invest in research and development and expand its product portfolio. The company’s commitment to innovation in the pharmaceutical industry is reflected in its robust pipeline and recent product launches, driving impressive revenue growth of 32% over the last twelve months. InvestingPro subscribers can access detailed analysis of Eli Lilly’s growth trajectory, along with 14 additional ProTips that provide crucial insights into the company’s performance.
Investors have shown confidence in Eli Lilly’s long-term strategy, as evidenced by the successful debt offering. The company’s solid financial foundation and history of delivering innovative healthcare solutions contribute to its strong reputation in the market. This confidence is further supported by Eli Lilly’s impressive 55-year track record of maintaining dividend payments, with a 15.38% dividend growth in the last twelve months.
This announcement is based on information from a press release statement and an SEC filing by Eli Lilly and Company.
In other recent news, Eli Lilly and Company has made significant strides in various aspects of its operations. The company recently announced a $6.5 billion six-part note offering, which received favorable ratings of Aa3 from Moody’s (NYSE:MCO) and A+ from S&P. The notes, due between 2028 and 2065, were managed by a consortium of financial institutions, including Barclays Capital Inc., BofA Securities, Inc., and Goldman Sachs & Co. LLC.
The pharmaceutical giant’s credit rating was also upgraded to Aa3 by Moody’s Ratings, reflecting expectations of robust earnings growth driven by the company’s incretin portfolio and other blockbuster products like Verzenio and Ebglyss. The company’s late-stage pipeline, led by orforglipron, is set to sustain longer-term growth.
In terms of product development, Eli Lilly reported that its drug Omvoh has shown sustained efficacy in Crohn’s disease patients over two years of continuous treatment. This promising development was revealed in the VIVID-2 study and presented at the Crohn’s and Colitis Congress in San Francisco.
Furthermore, Bernstein research firm reiterated an Outperform rating on Eli Lilly’s stock with a $1,100 price target. This positive outlook comes amid developments surrounding the company’s CagriSema drug, a prospective weight loss treatment. Finally, Eli Lilly’s stock rating was upgraded from Hold to Buy by Erste Group analysts, citing robust product demand and a promising pipeline of potential successes. These are some of the recent developments in Eli Lilly’s operations.
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