Pfizer to raise $31 billion in debt offering to fund Seagen acquisition, SEC filing shows

Pfizer plans to rise $31 cardinal done a debt offering to money its proposed acquisition of crab drugmaker Seagen, for what would beryllium its largest takeover since 2009, according to a caller filing with the Securities and Exchange Commission.

Pfizer expects to implicit the $43 cardinal Seagen buyout aboriginal this twelvemonth oregon successful aboriginal 2024. 

The indebtedness offering is expected to adjacent connected May 19, according to a prospectus supplement New York-based Pfizer filed with the SEC precocious Tuesday. 

The pharma giant's indebtedness offering would beryllium the biggest since CVS Health sold $40 cardinal of bonds successful 2018 to concern its acquisition of wellness insurer Aetna. 

Pfizer's determination comes arsenic different corporations including Apple, T-Mobile and Merck unreserved to tap the U.S. enslaved market up of a imaginable spike successful borrowing costs sparked by the indebtedness ceiling standoff. 

Pfizer's banal terms dropped somewhat connected Wednesday.

The institution said it volition unafraid backing for the woody to bargain Bothell, Washington-based Seagen done 8 tranches of notes that volition mature betwixt 2025 and 2063.

Each tranche is worthy $3 cardinal to $6 billion.

The output to maturity connected Pfizer's 10-year bonds would beryllium 4.75%, which is astir 125 ground points higher than the U.S. 10-year Treasury note.

Bank of America, Citigroup, Goldman Sachs and JPMorgan Chase are managing the indebtedness sale. 

Pfizer successful March agreed to bargain Seagen for $229 per stock successful cash. 

On Monday, the 2 companies submitted paperwork for their projected merger to the Federal Trade Commission and the Department of Justice, kicking disconnected a review period for the deal.

Investors are apt to show that high-stakes reappraisal closely, peculiarly successful airy of the lawsuit filed Tuesday by the FTC seeking to artifact Amgen's projected $27.8 cardinal acquisition of Horizon Therapeutics.

The Seagen woody is expected to fortify Pfizer's portfolio of crab drugs by bringing a people of antibody-drug conjugates, medicines that are designed to straight termination crab cells and spare steadfast ones.

Seagen has 4 approved crab therapies, which raked successful combined income of astir $2 billion successful 2022. 

Pfizer has said it expects much than $10 cardinal successful "risk-adjusted" income from Seagen successful 2030.

That gross could assistance offset an ongoing diminution successful income of Pfizer's Covid vaccine and antiviral pill Paxlovid arsenic the satellite emerges from the pandemic, and relies little connected those products.