Pfizer Seeks To Raise $4 Billion From Debt Sale

U.S. drugmaker Pfizer Inc. (PFE) disclosed the pricing of its four-tranche debt offering through which it intends to raise about $4 billion in proceeds.

The offering includes $750 million of 0.800% notes due 2025, $1 billion of 1.700% notes due 2030, $1 billion of 2.550% notes due 2040 and $1.25 billion of 2.700% notes maturing in 2050.

Pfizer, which is also engaged in the development of a coronavirus vaccine candidate, said it will use the net proceeds for general corporate purposes, including for repayment of a portion of its outstanding commercial paper and to refinance, redeem or repurchase existing debt.

The closing of the offering is scheduled for May 28, subject to satisfaction of customary closing conditions. Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are acting as joint book-running managers for the offering.

Last week, Pfizer CEO and Chairman Albert Bourla told CNBC that he wants to expand human trials of its experimental coronavirus vaccine to thousands of test patients by September.

On May 5, Pfizer and German partner BioNTech SE (BNTX) announced that the first participants have been dosed in the U.S. in the Phase 1/2 clinical trial for the BNT162 vaccine program to prevent Covid-19.

The first stage of the Phase 1/2 trial in the U.S. will enroll up to 360 healthy subjects in two age groups (18-55 and 65-85), with the younger group to receive the vaccine candidate first. The trial is part of a global development program, and the dosing of the first cohort in Germany was completed the previous week.

Shares in Pfizer, which dropped to a low on March 23, have since recovered advancing 34% to trade at $38.07 as of Monday. The stock was down 0.5% in Tuesday’s pre-market trading.

Overall, Wall Street analysts are divided over Pfizer’s stock with 4 Buy ratings and 3 Hold ratings which add up to a Moderate Buy consensus. The $42.22 average price target for Pfizer implies 11% upside potential for the drugmaker’s shares in the coming 12 months. (See Pfizer stock analysis on TipRanks).

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