AstraZeneca Raises $2 Billion in First Dollar Sale in Five Years

AstraZeneca Plc (AZN), the U.K.’s second- biggest drugmaker, raised $2 billion in its first dollar- denominated sale in five years.

The maker of Nexium issued $1 billion each of seven- and 30-year bonds, according to data compiled by Bloomberg. The 1.95 percent, seven-year debt yielded 85 basis points more than similar-maturity Treasuries and the 4 percent, 30-year bonds pay a spread of 120 basis points.

The company previously sold dollar debt in September 2007, issuing $1.75 billion each of 5.4 percent, five-year debt and 5.9 percent, 10-year bonds, Bloomberg data show. The company also sold $2.75 billion of 6.45 percent, 30-year securities and $650 million of two-year floating-rate notes.

The 30-year debt traded at 140.2 cents on the dollar to yield 3.92 percent on Aug. 28, according to Trace, the bond- price reporting system of the Financial Industry Regulatory Authority.

The new bonds may be rated A1, the fifth-highest level of investment grade, by Moody’s Investors Service, according to a person familiar with the transaction who asked not to be identified because the terms are private.

Goldman Sachs Group Inc., HSBC Holdings Plc, JPMorgan Chase & Co. and Morgan Stanley managed the sale for the London-based company, Bloomberg data show. Proceeds will be used to repay debt and for general corporate purposes.

The drug manufacturer last issued debt in any denomination in June 2008, selling 500 million euros, or $788 million at the time, of 5.625 percent debentures that matured in January 2010, Bloomberg data show.

GlaxoSmithKline Plc (GSK) is the U.K.’s biggest drugmaker.

To contact the reporter on this story: Sarika Gangar in New York at sgangar@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

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