Switzerland-based Sandoz (SWX: SDZ), a leader in the generics and biosimilars market, has successfully entered the Euro debt capital market by issuing three inaugural Eurobond debt instruments, raising EUR 2.0 billion (USD 2.1 billion). This capital will be combined with a previous CHF issuance to repay a bridge loan of EUR 2.4 billion (USD 2.6 billion) and will be used for general corporate purposes following its spin-off from Novartis (NYSE: NVS) last month.
Details of the Eurobond Issuance
The newly issued bonds offer fixed interest rates of 3.97%, 4.22%, and 4.50%, with corresponding maturities of 3.5, 6.5, and 10 years. This strategic move not only strengthens Sandoz’s financial position but also reflects the company’s commitment to diversifying its funding sources and managing its debt profile efficiently.
Repayment of Bridge Loan and Corporate Purposes
The funds raised through the Eurobond issuance will be instrumental in repaying the EUR 2.4 billion bridge loan that Sandoz incurred during its separation from Novartis. The remaining funds will be allocated to general corporate purposes, providing Sandoz with the financial flexibility to pursue its strategic initiatives and growth plans in the competitive generics and biosimilars industry.- Flcube.com
