AbbVie launches offering of senior notes to fund Allergan merger

By Cristal Cody

Tupelo, Miss., Nov. 6 – AbbVie Inc. launched a Rule 144A and Regulation S private offering of senior notes (Baa2/A-) on Wednesday to fund its acquisition of Allergan plc, according to a market source and a company news release.

Market sources estimate the deal size in the $20 billion to $30 billion area.

The offering is expected to include eight dollar-denominated tranches with maturities of 1.5, two, three, five, seven and 10 years.

Pricing is being eyed for the upcoming week.

AbbVie will hold fixed income investor calls on Thursday and Friday.

BofA Securities, Inc., Barclays and Morgan Stanley & Co. LLC are the lead managers on the offering.

The cash and stock acquisition of the Dublin-based pharmaceutical manufacturer (BBB/BBB-) is valued at about $63 billion.

Proceeds will be used to fund a portion of the purchase price with any remaining proceeds to be used for general corporate purposes.

AbbVie said it has secured underwritten financing commitments from Morgan Stanley Senior Funding, Inc. and MUFG Bank, Ltd. for approximately $38 billion to finance, together with cash on hand, the cash portion of the acquisition.

The merger is expected to close by early 2020.

AbbVie is a biopharmaceutical company based in North Chicago, Ill.

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