AbbVie Issues Large Bond to Finance Allergan Merger

The $28-billion bond issue will be the fourth largest in history.

 

AbbVie plans to close on its $63-billion buyout of Allergan in early 2020. To finance the deal, the company is issuing a $28-billion dollar bond, the fourth largest in history according to Bloomberg.

The merged companies will qualify as the fourth largest drug manufacturer in the world. Combined in 2019 they generated $19 billion in cash, so AbbVie CEO Richard Gonzalez is not worried about taking on the debt.

Earlier in 2019, Bristol-Myers Squibb issued $19 billion in bonds to partially finance its $74-billion Celgene acquisition, which is expected to close by the end of 2019.

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