Upjohn expected to price about $12 billion of high-grade bonds to fund Mylan merger

By Cristal Cody

Tupelo, Miss., June 15 – Upjohn Inc. is expected to price about $12 billion of senior notes (Baa3/BBB-/BBB) in multiple tranches in the near term as part of its spinoff from Pfizer Inc. and merger with Mylan NV, according to market sources.

The company began holding fixed income investor calls on Monday.

BofA Securities, Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA Inc. and Morgan Stanley & Co. LLC are the arrangers.

Mylan shareholders are scheduled to meet June 30 to vote on the merger after the vote was delayed on April 27 due to the coronavirus pandemic.

The merger announced in July 2019 is now expected to close in the second half of 2020.

The all-stock deal is valued at more than $32 billion.

Proceeds from the debt offering will be retained by Pfizer.

Following the merger, Upjohn will be renamed Viatris with the combined company expected to operate global centers in Pittsburgh, Shanghai and Hyderabad, India.

The new company is expected to have $24.5 billion of total debt outstanding at closing.

Upjohn is a pharmaceutical business based in Kalamazoo, Mich.

Mylan is a global pharmaceutical business with principal executive offices in Hertfordshire, England, and U.S. headquarters in Canonsburg, Pa.

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