AstraZeneca announces Eurobond launch

AstraZeneca has announced the launch of a successful debut Eurobond transaction, with the company issuing 750 million euros (514 million pounds) of bonds in total.

The firm reports that part of the money raised from this bond issuing will be used to pay off the outstanding US commercial paper related to the company’s acquisition of MedImmune, while the remainder will be used for general corporate purposes.

Issued off a new Euro Medium Term Note programme dated September 10th 2007, the transaction is due to mature in January 2015 with 5.125 per cent fixed rate issue coupon.

David Brennan, chief executive officer of AstraZeneca, said: “This transaction represents a further part of our refinancing of the acquisition of MedImmune, following our successful $6.9 billion (3.4 billion pounds), four-tranche SEC Global issue last week.”

He added that the bond issuing marks increased diversification of the funding of AstraZeneca resulting in an improvement in the financial flexibility of the firm.

Furthermore, he added that the company was “very pleased” with its reception on the bond market and the feedback on its credit gleaned from investor meetings in London, Frankfurt and Paris.

AstraZeneca completed its purchase of MedImmune in June 2007, acquiring the firm for the sum of $58 per share.