Can anybody explain this recent SEC filing by Lilly?
Does this mean Lilly is taking on an additional $2.2 billion in debt?
On February 24, 2015, Eli Lilly and Company (the “Company”) entered into an Underwriting Agreement (the “Underwriting Agreement”), between the Company and Deutsche Bank Securities Inc., Goldman, Sachs & Co. and Morgan Stanley & Co. LLC, as representatives of the several underwriters named therein, for the issuance and sale by the Company of $600,000,000 aggregate principal amount of its 1.250% Notes due 2018 (the “2018 Notes”), $800,000,000 aggregate principal amount of its 2.750% Notes due 2025 (the “2025 Notes”) and $800,000,000 aggregate principal amount of its 3.700% Notes due 2045 (the “2045 Notes”, and together with the 2018 Notes and the 2025 Notes, the “Notes”). The Notes are to be issued pursuant to an Indenture (the “Indenture”), dated February 1, 1991, between the Company and Deutsche Bank Trust Company Americas, as successor to Citibank, N.A., as trustee, and an officer’s certificate setting forth the terms of the Notes (which includes the forms of Notes as exhibits). The offering of the Notes was registered on a Registration Statement on Form S-3 (File No. 333-186979). The 2018 Notes accrue interest at a rate of 1.250% per annum, payable semiannually, and mature on March 1, 2018. The 2025 Notes accrue interest at a rate of 2.750% per annum, payable semiannually, and mature on June 1, 2025. The 2045 Notes accrue interest at a rate of 3.700% per annum, payable semiannually, and mature on March 1, 2045. At the closing of the offering of Notes, which is expected to occur on March 5, 2015, the Company will realize, after deduction of the underwriter’s discount and before deduction of offering expenses, net proceeds of approximately $2,181,948,000.
Does this mean Lilly is taking on an additional $2.2 billion in debt?
On February 24, 2015, Eli Lilly and Company (the “Company”) entered into an Underwriting Agreement (the “Underwriting Agreement”), between the Company and Deutsche Bank Securities Inc., Goldman, Sachs & Co. and Morgan Stanley & Co. LLC, as representatives of the several underwriters named therein, for the issuance and sale by the Company of $600,000,000 aggregate principal amount of its 1.250% Notes due 2018 (the “2018 Notes”), $800,000,000 aggregate principal amount of its 2.750% Notes due 2025 (the “2025 Notes”) and $800,000,000 aggregate principal amount of its 3.700% Notes due 2045 (the “2045 Notes”, and together with the 2018 Notes and the 2025 Notes, the “Notes”). The Notes are to be issued pursuant to an Indenture (the “Indenture”), dated February 1, 1991, between the Company and Deutsche Bank Trust Company Americas, as successor to Citibank, N.A., as trustee, and an officer’s certificate setting forth the terms of the Notes (which includes the forms of Notes as exhibits). The offering of the Notes was registered on a Registration Statement on Form S-3 (File No. 333-186979). The 2018 Notes accrue interest at a rate of 1.250% per annum, payable semiannually, and mature on March 1, 2018. The 2025 Notes accrue interest at a rate of 2.750% per annum, payable semiannually, and mature on June 1, 2025. The 2045 Notes accrue interest at a rate of 3.700% per annum, payable semiannually, and mature on March 1, 2045. At the closing of the offering of Notes, which is expected to occur on March 5, 2015, the Company will realize, after deduction of the underwriter’s discount and before deduction of offering expenses, net proceeds of approximately $2,181,948,000.