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Celgene to issue $4.5B in debt to help pay for Juno acquisition

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Summit-based pharmaceutical company Celgene Corp. is set to close on a $4.5 billion debt issue in a move tied in part to its $1 billion acquisition of Juno Therapeutics.

The cash and stock acquisition of Juno was announced in June 2015 and closed earlier this month.

Celgene’s new debt issue comes in four parts:

  • $500 million in three-year notes, with a coupon of 2.875 percent and a yield of 2.891 percent;
  • $1 billion in five-year notes, with a coupon of 3.25 percent and a yield of 3.3 percent;
  • $1.5 billion in 10-year notes bearing 3.9 percent and yielding 3.942 percent; and
  • $1.5 billion in 30-year notes, with a coupon of 4.55 percent and a 4.587 percent yield.

The notes will be issued Tuesday. Celgene intends to use net proceeds from the offering to finance a portion of the Juno acquisition and to pay fees and expenses associated with the offering.

Citigroup Global MarketsDeutsche Bank SecuritiesJ.P. Morgan SecuritiesMerrill Lynch and Pierce, Fenner & Smith will act as joint book-runners. A banker associated with the deal said that he expects it to be fully subscribed, mostly by institutional investors.

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Vince Calio

Vince Calio

Vince Calio covers health care and manufacturing for NJBIZ. You can contact him at vcalio@njbiz.com.

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