Replies to post #21496 on The Rising Influence of Rising Affluence

[DewDiligence]

PFE’s new $1.25B bond flotation is nominally for ESG purposes:

https://www.businesswire.com/news/home/20200327005291/en

However, since money in fungible, this designation is mostly cosmetic.

[DewDiligence]

3M issues $1.75B of 5/10/20yr notes paying 2.65%, 3.065%, and 3.70%, respectively (coupon rates, not YTM):

https://www.sec.gov/Archives/edgar/data/66740/000104746920001817/a2241151z424b5.htm

As a cyclical company, 3M is paying higher interest rates than (e.g.) PFE and SNY.

[DewDiligence]

PFE sells $4B of debt in four tranches:

https://finance.yahoo.com/news/pfizer-prices-4-000-000-012400991.html

• $750M of 5yr notes paying 0.80%
• $1.0B of 10yr notes paying 1.70%
• $1.0B of 20yr notes paying 2.55%
• $1.25B of 30yr notes paying 2.70%

At these crazy-low rates, PFE would be crazy not to do it.

Note: Two months ago, PFE sold $1.25B of 10yr notes paying 2.665% (#msg-154570474), considerably higher than the 10yr interest rate in today’s flotation.

[DewDiligence]

BMY sells $7B of 3-30yr notes—to fund MYOK acquisition:

https://www.businesswire.com/news/home/20201109006199/en

• $1.5B of 3yr notes paying 0.537%
• $1.0B of 5yr notes paying 0.750%
• $1.0B of 7yr notes paying 1.125%
• $1.25B of 10yr notes paying 1.450%
• $0.75B of 20yr notes paying 2.350%
• $1.5B of 30yr notes paying 2.550%

At these rates, BMY should borrow as much as possible!