Eli Lilly and Company (NYSE:LLY), a global pharmaceutical leader, has successfully raised approximately $4.96 billion through the sale of notes, according to a recent SEC filing. On Monday, the company entered into an underwriting agreement with a syndicate of banks for the issuance and sale of a series of notes with varying maturities and interest rates.
The offering includes $750 million of 4.150% notes due in 2027, $1 billion of 4.200% notes due in 2029, $1.25 billion of 4.600% notes due in 2034, $1.25 billion of 5.050% notes due in 2054, and $750 million of 5.200% notes due in 2064. The interest on these notes will be paid semi-annually.
Eli Lilly completed the offering today, with net proceeds before estimated offering expenses reaching approximately $4.96 billion after underwriting discounts. These proceeds are intended for general corporate purposes, which may include the repayment of existing debt, funding for the company's research and development efforts, and potential acquisitions.
The notes were issued under an existing indenture with Deutsche Bank Trust Company Americas as the trustee. Eli Lilly has reserved the right to redeem these notes in whole or in part at any time under certain conditions outlined in the notes.
This article is based on information contained in a press release statement filed with the SEC.
In other recent news, Eli Lilly and Co. reported robust Q2 earnings, with a substantial 36% increase in revenue and an 86% surge in earnings per share. This growth has been largely attributed to strong demand for new products, Mounjaro and Zepbound, in the US market. In response to these results, BMO Capital Markets maintained an Outperform rating on the pharmaceutical giant, raising the price target to $1,101 from the previous $1,001.
Lilly has been actively protecting its market share, recently issuing cease-and-desist letters to healthcare providers promoting alternative weight-loss medications to its product, Zepbound. The company also launched the Lilly Seaport Innovation Center in Boston, aiming to advance research in genetic medicines.
InvestingPro Insights
Eli Lilly and Company's (NYSE:LLY) recent successful note sale underscores its financial robustness and investor confidence. To provide further context to investors, real-time data from InvestingPro reveals key financial metrics: Eli Lilly boasts a robust market capitalization of $833.93 billion, signaling its significant presence in the pharmaceutical industry. The company's P/E ratio stands at 113.83, reflecting a high valuation by the market, which could be attributed to its consistent performance and growth prospects. Additionally, Eli Lilly has demonstrated a strong revenue growth of 31.87% over the last twelve months as of Q2 2024, showcasing its ability to expand its financial base amidst a competitive landscape.
Investors may also find the following InvestingPro Tips relevant when considering Eli Lilly's financial health and future prospects: The company has a history of dividend reliability, having raised its dividend for 9 consecutive years, and maintained dividend payments for 54 consecutive years. Furthermore, Eli Lilly is expected to see net income growth this year, providing a positive outlook for potential and current investors. For those seeking more comprehensive analysis, there are 20 additional InvestingPro Tips available at https://www.investing.com/pro/LLY, which delve into various aspects of the company's performance and valuation.
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