AbbVie Inc (ABBV) said earlier this week that it had priced its previously announced private offering of senior unsecured notes in a combined aggregate principal amount of $30 billion.
The offering is expected to close on November 21st.
AbbVie shares closed higher for a fourth consecutive trading session in New York on Wednesday. The stock edged up 0.25% ($0.22) to $86.66, after touching an intraday low at $85.40, or a price level not seen since November 11th ($83.90).
Shares of AbbVie Inc have retreated 6.00% so far in 2019 compared with a 23.42% gain for the benchmark index, S&P 500 (SPX).
In 2018, AbbVie Inc’s stock went down 4.67%, thus, it outperformed the S&P 500, which registered a 6.24% loss.
AbbVie said that it would issue the notes in 10 tranches as follows:
first, $750,000,000 in aggregate principal amount of senior floating rate notes due May 2021,
second, $750,000,000 in aggregate principal amount of senior floating rate notes due November 2021,
third, $750,000,000 in aggregate principal amount of senior floating rate notes due 2022,
fourth, $1,750,000,000 in aggregate principal amount of 2.150% senior notes due 2021,
fifth, $3,000,000,000 in aggregate principal amount of 2.300% senior notes due 2022,
sixth, $3,750,000,000 in aggregate principal amount of 2.600% senior notes due 2024,
seventh, $4,000,000,000 in aggregate principal amount of 2.950% senior notes due 2026,
eighth, $5,500,000,000 in aggregate principal amount of 3.200% senior notes due 2029,
ninth, $4,000,000,000 in aggregate principal amount of 4.050% senior notes due 2039 and
tenth, $5,750,000,000 in aggregate principal amount of 4.250% senior notes due 2049.
The net proceeds from the offering are to be used by AbbVie to finance a part of the aggregate cash consideration due to Allergan Plc shareholders in relation with the previously announced acquisition of the company and to cover related expenses and fees. Any remaining net proceeds are to be used for general corporate purposes, AbbVie said.
Analyst stock price forecast and recommendation
According to CNN Money, the 9 analysts, offering 12-month forecasts regarding Abbvie Inc’s stock price, have a median target of $90.00, with a high estimate of $130.00 and a low estimate of $79.00. The median estimate represents a 3.85% upside compared to the closing price of $86.66 on November 13th.
The same media also reported that at least 6 out of 10 surveyed investment analysts had rated Abbvie Inc’s stock as “Buy”, while 3 – as “Hold”.
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