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Shire to sell US$1 billion in bonds to help finance New River acquisition

Shire to sell US$1 billion in bonds to help finance New River acquisition

Pharmaceutical company Shire PLC said Wednesday it will sell US$1 billion (euro1.47 billion) worth of bonds later convertible into stock as it seeks fresh financing to help its acquisition of New River Pharmaceuticals Inc.
The proceeds of the bond sale will be used to pay back bank debt incurred as a result of the acquisition of New River. Shire bought New River for about US$2.6 billion (euro1.92 billion) and is incorporating it as a subsidiary business.
The stock dipped 0.8 percent to 1,144 pence (US$22.89; euro16.78) on the London Stock Exchange.
The bonds are expected to pay interest of as much as 3.18 percent a year and will be convertible at a premium of as much as 50 above the average price between Wednesday and the actual pricing, the company said in a statement. The bonds are due to mature in 2014.
Holders of the bonds will be able to sell them in five years.


Updated : 2021-07-25 23:35 GMT+08:00