Eli Lilly Launches Investment-Grade Bond Issuance to Fund Acquisitions

Eli Lilly (LLY.N) has initiated an investment-grade bond issuance to raise funds for its recent series of acquisitions, according to Jin10. Informed sources indicate that Eli Lilly plans to issue bonds with up to eight different maturities, ranging from 2 to 40 years. The longest maturity bond, due in 2066, has an initial price guidance of approximately 113 basis points above U.S. Treasury yields. Eli Lilly has been actively pursuing large-scale acquisitions recently. In the past two months, the company has reached agreements to acquire Centessa Pharmaceuticals Plc, a developer of sleep medications, for up to $7.8 billion, and Kelonia Therapeutics, a cancer drug developer, for up to $7 billion. These transactions rank among the most expensive acquisitions in Eli Lilly's history. CEO Dave Ricks has indicated that investors should expect more deals in the future. The bond issuance comes on the heels of Eli Lilly's strong first-quarter performance, which led the company to raise its full-year sales and profit forecasts.