Watson Pharmaceuticals Inc., the generic-drug maker that agreed to buy Actavis Group hf for 4.25 billion euros ($5.6 billion) in April, raised $3.9 billion in a three-part bond offering to help finance the deal.
The company issued $1.2 billion of five-year, 1.875 percent notes that yield 135 basis points more than similar-maturity Treasuries, $1.7 billion of 3.25 percent debt due in 2022 with a 170 basis-point spread and $1 billion of 4.625 percent, 30-year securities that yield 190 basis points more than benchmarks, according to data compiled by Bloomberg.
Proceeds from the sale, along with cash and other borrowings, will be used to finance the takeover, Parsippany, New Jersey-based Watson said today in a regulatory filing. Acquiring Actavis would create the third-largest global generic-drug maker with about $8 billion anticipated in 2012 revenue, the company said in April.
The new bonds were rated one level above junk at Baa3 by Moody’s Investors Service and a grade higher at BBB by Standard & Poor’s.