Pfizer Inc. expects to issue about £1.38 billion of new notes in exchange for its 6.500% notes due 2038 as part of an exchange offer.
The outstanding amount of the 2038 notes is £1.50 billion and the company plans to accept £833.5 million of the notes tendered as of Dec. 14, the offer's expiration date.
Pfizer said the new notes will mature June 15, 2043, and will bear interest at a rate per annum of 2.735%. The company also expects to pay about £29.7 million in cash in accrued and unpaid interest and cash paid in lieu of fractional amounts of new notes.
The company will not receive any cash proceeds from the exchange offer.
In addition, the company expects to purchase for cash any and all of the 2038 notes. The company plans to accept £196.6 million of the notes tendered as of the offer's Dec. 14 expiration date.
Pfizer expects to pay cash in respect of the total consideration of about £324.5 million and pay about £7 million in cash in accrued and unpaid interest.
