Tuesday, March 17, 2009
Drugmaker Pfizer Inc. is selling bonds to replace short-term loans covering a third of the cost of its planned acquisition of rival Wyeth.
The bonds will be sold in groups with maturities of three, six, 10 and 20 years. The sales are expected to close within a couple days.
Pfizer's $68 billion cash, stock and debt deal to buy Wyeth includes borrowing $22.5 billion through a loan with multiple banks. That financing expires at the end of the year, so the loans must be replaced with longer-term debt.
Pfizer has not disclosed details on the pricing or interest rates on the new bonds. Those details should be released when the sales have closed.
New York-based Pfizer makes blockbusters including cholesterol pill Lipitor and impotence treatment Viagra.