AbbVie Inc . (NYSE:ABBV), a global biopharmaceutical company with a market capitalization of $359 billion and annual revenue of $56.3 billion, announced today the completion of its public offering of senior notes totaling $4 billion. The offering, registered under the Securities Act of 1933, comprised four series of notes with varying maturities and interest rates, as detailed in the company’s recent SEC filing. According to InvestingPro data, AbbVie maintains a strong financial health score, with 14 additional key insights available to subscribers.
The notes issued include $1.25 billion of 4.650% senior notes due 2028, $1 billion of 4.875% senior notes due 2030, $1 billion of 5.200% senior notes due 2035, and $750 million of 5.600% senior notes due 2055. These debt securities were offered under a shelf registration statement that was filed on February 14, 2025, and the terms of the notes were described in a prospectus supplement filed on February 20, 2025. This new issuance adds to AbbVie’s existing total debt of $68 billion, with InvestingPro analysis showing the company’s current ratio at 0.66.
AbbVie’s newly issued notes are unsecured and unsubordinated, ranking equally with the company’s existing and future unsecured, unsubordinated indebtedness. The notes will mature on March 15 of their respective years, and AbbVie retains the option to redeem the notes at specified times prior to their maturity dates, at prices outlined in the indenture.
The indenture, which governs the notes, includes customary terms and covenants. These include limitations on AbbVie’s ability to incur liens securing funded indebtedness, as well as restrictions on the company’s ability to consolidate, merge, convey, transfer, or lease its properties and assets substantially as an entirety.
The offering’s completion is a strategic financial move for AbbVie, providing the company with capital for general corporate purposes, which may include repaying existing debt, funding ongoing operations, and supporting capital expenditures. The company’s stock is currently trading near its 52-week high, with detailed valuation metrics and comprehensive analysis available in the InvestingPro Research Report, part of the platform’s coverage of over 1,400 US equities.
The transaction was facilitated by U.S. Bank Trust Company, National Association, which served as the trustee under the indenture. The details of the indenture are available in the exhibits attached to the SEC filing, which provides the legal framework for the terms and conditions of the notes.
This information is based on a press release statement and the associated SEC filing by AbbVie Inc.
In other recent news, AbbVie has announced the FDA approval of EMBLAVEO™, a novel antibiotic for complicated intra-abdominal infections, marking a significant advancement in addressing antimicrobial resistance. This approval, supported by clinical data and collaborations with Pfizer (NYSE:PFE), highlights a new treatment option for challenging Gram-negative bacterial infections. Additionally, AbbVie has expanded its financial resources by securing a $3 billion credit facility, increasing its total borrowing capacity to $8 billion, which underscores its strategic financial planning. In a strategic move, Mustang Bio (NASDAQ:MBIO) has finalized an agreement with AbbVie Bioresearch Center to sell certain assets and terminate its lease early, potentially saving $2 million in lease payments. The transaction represents a shift in Mustang Bio’s operational strategy. Furthermore, AbbVie has entered into a collaboration with Xilio Therapeutics to develop tumor-activated immunotherapies, with Xilio receiving $52 million upfront and potential future payments up to $2.1 billion. This partnership aims to leverage Xilio’s technology and AbbVie’s oncology expertise to advance cancer treatments. These developments reflect AbbVie’s ongoing efforts in expanding its R&D and financial strategies in the pharmaceutical landscape.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.