Stock Update (NASDAQ:CELG): Celgene Corporation Prices $8 Billion of Senior Unsecured Notes

Celgene Corporation (NASDAQ:CELG) announced the successful pricing of five series of senior unsecured notes for an aggregate principal amount of $8.0 billion. Of these notes, $1.0 billion will mature in 2018 and will bear interest at an annual rate of 2.125 percent, $1.5 billion will mature in 2020 and will bear interest at an annual rate of 2.875 percent, $1.0 billion will mature in 2022 and will bear interest at an annual rate of 3.550 percent, $2.5 billion will mature in 2025 and will bear interest at an annual rate of 3.875 percent and$2.0 billion will mature in 2045 and will bear interest at an annual rate of 5.000 percent. The 2.125 percent notes due 2018, the 2.875 percent notes due 2020, the 3.550 percent notes due in 2022, the 3.875 percent notes due in 2025 and the 5.000 percent notes due in 2045 were priced to yield 2.127 percent, 2.914 percent, 3.594 percent, 3.993 percent and 5.020 percent, respectively.

Celgene expects to use the net proceeds from the offering to finance a portion of the acquisition of Receptos, Inc. and the remainder for general corporate purposes, which may include, without limitation, further development of Celgene’s clinical and pre-clinical programs, capital expenditures, general corporate development activities, meeting working capital needs, share repurchases of Celgene’s common stock and repayment of some or all of Celgene’s outstanding commercial paper. The offering is expected to close on August 12, 2015. (Original Source)

Shares of Celgene Corporation closed yesterday at $131.47. CELG has a 1-year high of $140.72 and a 1-year low of $83.16. The stock’s 50-day moving average is $124.14 and its 200-day moving average is $118.88.

On the ratings front, Celgene has been the subject of a number of recent research reports. In a report issued on July 27, Morgan Stanley analyst Matthew Harrison maintained a Hold rating on CELG, with a price target of $134, which represents a slight upside potential from current levels. Separately, on July 24, Canaccord Genuity’s John Newman reiterated a Buy rating on the stock and has a price target of $190.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Matthew Harrison and John Newman have a total average return of 13.7% and 15.9% respectively. Harrison has a success rate of 75.0% and is ranked #806 out of 3724 analysts, while Newman has a success rate of 59.3% and is ranked #153.

The street is mostly Bullish on CELG stock. Out of 8 analysts who cover the stock, 6 suggest a Buy rating and 2 recommend to Hold the stock. The 12-month average price target assigned to the stock is $146.00, which represents a potential upside of 11.1% from where the stock is currently trading.


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