ABBV
Abbvie INC
NYSE
8-K: AbbVie Announces $4 Billion Senior Notes Offering to Refinance Debt and for General Corporate Purposes
Sentiment:
Debt Offering Announcement
19 February 2025 9:22 AM
AbbVie Inc. has announced the offering of $4 billion in aggregate principal amount of senior notes due in 2028, 2030, 2035 and 2055 to refinance existing debt and for general corporate purposes.
Capital raise
AbbVie is issuing $4 billion in senior notes.
The offering includes notes due in 2028, 2030, 2035, and 2055.
The company expects to receive approximately $3.98 billion in net proceeds.
Summary
- AbbVie Inc. has entered into an underwriting agreement to issue and sell $4 billion in senior notes.
- The notes are comprised of $1.25 billion in 4.650% senior notes due 2028, $1 billion in 4.875% senior notes due 2030, $1 billion in 5.200% senior notes due 2035, and $750 million in 5.600% senior notes due 2055.
- The notes were priced to the public at 99.867%, 99.908%, 99.857%, and 99.750% of the principal amount, respectively.
- The offering is registered under the Securities Act of 1933, with the registration statement dated February 14, 2025.
- The closing of the sale of the notes is expected to occur on February 26, 2025, subject to customary closing conditions.
- The net proceeds from the sale of the notes are expected to be approximately $3.98 billion.
- AbbVie intends to use the net proceeds, along with cash on hand, to repurchase or repay existing senior notes due in 2025 and for general corporate purposes.
Sentiment
Score: 7
Explanation: The document is neutral to positive. It describes a standard financial transaction (debt offering) for refinancing purposes, which is generally viewed as a positive financial management strategy. There are no explicit negative indicators, but the forward-looking statements are subject to standard risks and uncertainties.
Positives
- The offering allows AbbVie to refinance near-term debt maturities, extending its debt maturity profile.
- The company has the flexibility to use the proceeds for general corporate purposes, providing financial flexibility.
- The underwriting agreement includes customary terms and conditions, suggesting a standard transaction.
Risks
- The closing of the sale is subject to customary closing conditions, which if not met, could delay or prevent the offering.
- Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.
Future Outlook
AbbVie intends to use the net proceeds from the sale of the notes, together with cash on hand, to repurchase, redeem, satisfy and discharge, defease, make a tender offer for, or otherwise repay at maturity certain of its outstanding senior notes due in 2025 and/or for general corporate purposes.
Industry Context
In the pharmaceutical industry, debt offerings are a common way to manage capital structure, fund acquisitions, and invest in research and development. AbbVie's offering is consistent with this trend, allowing the company to refinance existing debt at potentially favorable rates and maintain financial flexibility.
Comparison to Industry Standards
- Comparable companies such as Johnson & Johnson, Pfizer, and Merck also utilize debt financing as part of their capital management strategies.
- The interest rates on AbbVie's new senior notes are in line with current market rates for investment-grade corporate debt.
- The use of proceeds to refinance existing debt and for general corporate purposes is a typical application of funds raised through debt offerings in the pharmaceutical sector.
Stakeholder Impact
- Shareholders: The offering could impact AbbVie's earnings per share and financial leverage.
- Creditors: The offering will change the composition of AbbVie's debt structure.
- Employees: The offering is unlikely to have a direct impact on employees.
- Customers: The offering is unlikely to have a direct impact on customers.
Next Steps
- The closing of the sale of the notes is expected to occur on February 26, 2025, subject to customary closing conditions.
- AbbVie will use the net proceeds to repurchase or repay existing senior notes due in 2025 and for general corporate purposes.
Key Dates
- November 8, 2012: Date of the Base Indenture between AbbVie and U.S. Bank Trust Company, National Association.
- February 14, 2025: Date of AbbVie's registration statement on Form S-3ASR.
- February 18, 2025: Date of the underwriting agreement and preliminary prospectus supplement.
- February 19, 2025: Date of report.
- February 20, 2025: Expected date for filing the final prospectus supplement with the SEC.
- February 26, 2025: Expected closing date of the sale of the notes.
- March 15, 2025: Maturity date of some of the senior notes being refinanced.
- May 14, 2025: Maturity date of some of the senior notes being refinanced.
- March 15, 2028: Maturity date of the 4.650% Senior Notes due 2028.
- March 15, 2030: Maturity date of the 4.875% Senior Notes due 2030.
- March 15, 2035: Maturity date of the 5.200% Senior Notes due 2035.
- March 15, 2055: Maturity date of the 5.600% Senior Notes due 2055.
Keywords
senior notes, debt offering, AbbVie, refinancing, underwriting agreement, securities, corporate finance
ABBV
Abbvie INC
NYSE
Sector: TBD
Filings with Classifications
Better than expected
9 May 2025 1:24 PM
Quarterly Report
- The company reported an 8% increase in net revenues on a reported basis and a 10% increase on a constant currency basis, indicating strong growth.
- Operating earnings reached $3.7 billion, with diluted earnings per share at $0.72, reflecting improved profitability.
- Key growth drivers included Skyrizi and Rinvoq in immunology, and Vraylar and Botox Therapeutic in neuroscience, demonstrating successful product performance.
Better than expected
25 April 2025 7:48 AM
Quarterly Report
- AbbVie's first-quarter results exceeded expectations, leading to an increase in the company's full-year adjusted diluted EPS guidance.
Worse than expected
3 April 2025 4:13 PM
8-K Filing
- The company's full-year adjusted diluted EPS guidance has been lowered from $12.12 $12.32 to $11.99 $12.19 due to the $248 million IPR&D expense in Q1 2025.
Better than expected
24 March 2025 4:28 PM
Proxy Statement
- AbbVie's 2024 results exceeded expectations with strong revenue growth and a robust R&D pipeline, indicating better-than-expected performance.
Capital raise
26 February 2025 5:04 PM
Debt Offering Announcement
- AbbVie completed an underwritten public offering of $4 billion in senior notes.
- The offering was registered under the Securities Act of 1933.
- The proceeds from the notes offering are likely to be used for general corporate purposes, including refinancing existing debt, funding acquisitions, and investing in research and development.
Capital raise
19 February 2025 9:22 AM
Debt Offering Announcement
- AbbVie is issuing $4 billion in senior notes.
- The offering includes notes due in 2028, 2030, 2035, and 2055.
- The company expects to receive approximately $3.98 billion in net proceeds.
Better than expected
18 February 2025 5:00 PM
SEC Form 4
- The vesting of performance-based awards suggests that the company exceeded its performance targets, leading to the release of these shares to the executive.
Worse than expected
14 February 2025 1:17 PM
Annual Report (Form 10-K)
- Humira sales declined by 37% globally due to biosimilar competition, which is worse than expected.
Delay expected
14 February 2025 1:17 PM
Annual Report (Form 10-K)
- AbbVie received a Complete Response Letter (CRL) from the FDA for the New Drug Application (NDA) for ABBV-951 for the treatment of motor fluctuations in adults with advanced Parkinson's disease.
Worse than expected
31 January 2025 7:42 AM
Quarterly Report
- The full-year diluted EPS decreased by 12.1% on a GAAP basis and 8.9% on an adjusted basis.
- The company experienced a diluted loss per share in the fourth quarter on a GAAP basis.
- The fourth-quarter results included a significant unfavorable impact from acquired IPR&D and milestones expense.
- The company recorded a non-cash after-tax intangible asset impairment charge of $3.5 billion related to emraclidine.
Worse than expected
10 January 2025 8:31 AM
8-K Filing
- The document details a $3.5 billion impairment charge due to failed clinical trials, indicating worse than expected results for the emraclidine program.
Worse than expected
6 January 2025 4:02 PM
Earnings Guidance Update
- The updated guidance includes a $1.6 billion charge for acquired IPR&D and milestones expense, which significantly reduces both Q4 and full-year adjusted diluted EPS compared to previous guidance.
Worse than expected
4 November 2024 2:19 PM
Quarterly Report
- The company's diluted earnings per share of $0.88 for the quarter and $2.41 for the nine months ended September 30, 2024 were negatively impacted by significant expenses related to amortization of intangible assets, changes in fair value of contingent consideration liabilities, acquisition and integration costs, and litigation matters.
- The company's operating cash flows decreased compared to the prior year due to the timing of working capital, higher contingent consideration payments and decreased results from operations driven by acquisition-related cash expenses.
Delay expected
4 November 2024 2:19 PM
Quarterly Report
- AbbVie received a Complete Response Letter from the FDA for the New Drug Application for ABBV-951 due to observations identified during inspection of a third-party manufacturer.
Better than expected
30 October 2024 7:43 AM
Quarterly Report
- The company raised its full-year adjusted diluted EPS guidance, indicating better than expected performance.
- The company's adjusted diluted EPS of $3.00 was better than the previous year's $2.95.
- The company's net revenues increased by 3.8 percent on a reported basis, indicating better than expected performance.
Worse than expected
3 October 2024 4:07 PM
Earnings Guidance Update
- The $82 million expense for acquired IPR&D and milestones will negatively impact both GAAP and adjusted non-GAAP diluted earnings per share by $0.04.
- The full-year and third quarter adjusted diluted EPS guidance ranges have been lowered to reflect this expense.
Delay expected
7 August 2024 3:00 PM
Quarterly Report
- AbbVie received a Complete Response Letter from the FDA for ABBV-951 due to observations identified during inspection of a third-party manufacturer, delaying the potential approval of the drug.
Worse than expected
7 August 2024 3:00 PM
Quarterly Report
- The company's earnings per share were negatively impacted by acquisition-related costs and amortization of intangible assets.
- Humira sales declined significantly due to biosimilar competition, which was worse than expected.
- Operating cash flows decreased compared to the prior year due to working capital timing and acquisition-related expenses.
Capital raise
7 August 2024 3:00 PM
Quarterly Report
- AbbVie issued $15 billion in senior notes to finance the acquisitions of ImmunoGen and Cerevel Therapeutics.
- The company also borrowed and repaid $5.0 billion under a term loan credit agreement in connection with these acquisitions.
Better than expected
25 July 2024 7:41 AM
Quarterly Report
- The company's second-quarter results exceeded expectations, driven by strong performance in its ex-Humira portfolio.
- AbbVie raised its full-year adjusted diluted EPS guidance, indicating better than previously anticipated financial performance.
Delay expected
25 July 2024 7:41 AM
Quarterly Report
- AbbVie received a Complete Response Letter (CRL) from the FDA for the New Drug Application (NDA) for ABBV-951, citing observations identified during inspection of a third-party manufacturer, which will delay the launch of the product.
Worse than expected
3 July 2024 2:07 PM
Earnings Guidance Update
- The company's earnings guidance for both the full year and the second quarter has been lowered due to a significant $937 million IPR&D expense.
Better than expected
3 May 2024 11:04 AM
Quarterly Report
- The diluted earnings per share significantly increased to $0.77 from $0.13 year-over-year, indicating better than expected profitability.
- Net earnings attributable to AbbVie Inc. were $1.369 billion, a substantial increase from $239 million in the first quarter of 2023, showing better than expected results.
Capital raise
3 May 2024 11:04 AM
Quarterly Report
- AbbVie issued $15 billion in senior notes to finance the acquisition of ImmunoGen and the proposed acquisition of Cerevel Therapeutics.
- The company borrowed and repaid $5.0 billion under a term loan credit agreement in February 2024.
Delay expected
3 May 2024 11:04 AM
Quarterly Report
- The company made a decision to revise the research and development plan for AGN-151607, a novel investigational neurotoxin, which contributed to a delay in the estimated timing of regulatory approval.
Better than expected
26 April 2024 7:43 AM
Quarterly Report
- The company raised its full-year adjusted diluted EPS guidance, indicating better than expected future performance.
- First quarter results were well ahead of expectations, driven by excellent performance from the ex-Humira growth platform.
Worse than expected
3 April 2024 4:06 PM
Earnings Guidance Update
- The company's earnings per share guidance has been lowered due to a $164 million expense related to acquired IPR&D and milestones.
Capital raise
26 February 2024 5:08 PM
Debt Offering Announcement
- AbbVie is raising $15 billion through the issuance of senior notes.
- The notes are being sold to underwriters in a registered public offering.
- The proceeds will be used for specific purposes including acquisitions and debt repayment.
Worse than expected
12 February 2024 7:49 AM
Merger Announcement
- The acquisition is expected to be dilutive to AbbVie's EPS in 2024, with a $0.42 per share impact for the full year and $0.04 per share in the first quarter.
Worse than expected
2 February 2024 7:51 AM
Quarterly Report
- The full-year GAAP diluted EPS decreased by 59.0%, indicating worse than expected profitability.
- The overall net revenues decreased by 6.4% on a reported basis, showing worse than expected sales performance.
- Humira revenues experienced a substantial decline due to biosimilar competition, which was worse than expected.
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