Mylan raising $6.5b for Meda acquisition

Mylan execs open TASE trading

Mylan is issuing four bond series at interest rates ranging from 2.5% to 5.25%.

Pharmaceutical firm Mylan N.V. (Nasdaq: MYL; TASE: MYL) is raising $6.5 billion in debt to finance the acquisition of Swedish company Meda.

Mylan reported the completion of its pricing for a private placement of four bond series: $1 billion in bonds at 2.5% interest repayable in 2019, $2.25 billion in bonds at 3.15% interest repayable in 2021, $2.25 billion in bonds at 3.95% interest repayable in 2026, and $1 billion in bonds at 5.25% interest repayable in 2046. Mylan plans to use the bond proceeds to pay for the Meda acquisition in a $7.2 billion cash and shares deal ($10 billion including Meda's debt), which it announced in February. Mylan already has a bank bridging loan obtained for purposes of the acquisition.

Since reporting the Meda acquisition, Mylan has also reported another major deal: the acquisition of the business of dermatology company Renaissance Acquisition Holdings for $1 billion. Last year, Mylan attempted a takeover of Perrigo Company (NYSE:PRGO; TASE:PRGO), but its offer to purchase did not attain the necessary majority. Managed by CEO Heather Bresch, Mylan has a $22 billion market cap.

Published by Globes [online], Israel business news - www.globes-online.com - on June 1, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Mylan execs open TASE trading
Mylan execs open TASE trading
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