Biotech Values

[DewDiligence]

ACT’s $21B bond issue—the second-largest ever—prices at rock-bottom rates:

http://www.bloomberg.com/news/articles/2015-03-02/in-negative-yield-world-actavis-shows-a-little-goes-a-long-way

Actavis is offering $4 billion of 10-year notes that are being sold at 1.75 percentage points more than Treasuries with similar maturities, according to a person with knowledge of the deal who wasn’t authorized to speak publicly. The securities had initially been marketed at a spread of 2 percentage points.

The company’s banks, led by JPMorgan Chase & Co., Mizuho Financial Group Inc. and Wells Fargo & Co., received orders for $90 billion of the debt [!].

The longest-dated piece of Actavis’s nine-part deal consists of bonds maturing in 30 years that are being sold at a yield of about 2.1 percentage points more than similar-maturity Treasuries, down from an initial premium of about 2.4 percentage points.

The proceeds of the debt offering will be used to fund the cash portion of the $66B AGN deal.