Takeda's ‘Scary’ Debt for Shire Deal Fuels Credit Market Concern
Takeda Agrees to Buy Shire in Cash, Share Deal
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Japan’s biggest-ever acquisition may come at a steep cost for Takeda Pharmaceutical Co.’s financial health.
The Japanese drug maker secured a bridge loan facility of about $31 billion to help pay for its purchase of Shire Plc, in what likely is the largest borrowing ever by a Japanese company for an acquisition. Takeda’s net debt to earnings before interest, taxes, depreciation and amortization may rise to 5.4 times from 1.9 as of the end of December, and it may take several years for that gauge to fall back down to healthier levels, according to SMBC Nikko Securities Inc.