Amgen Inc. has attracted about $55.7 billion of investor orders on Wednesday for its mega bond deal, signaling strong demand for financing tied to its roughly $28 billion acquisition of Dublin-based Horizon Therapeutics, according to a tally from Informa Global Markets.
announced plans for the mashup in December, with Amgen receiving a $28.5 billion bridge credit facility from Citibank and Bank of America to help aid the transaction.
The target size of the new bond deal was around $20 billion according to investors, with proceeds helping Amgen fund its acquisition with longer-term debt.
Yields in the U.S. investment-grade corporate bond market have retreated to around 5% from October’s peak levels of 6%, evidence of the rally in risk assets to kick off 2023, despite higher interest rates stemming from the Federal Reserve’s inflation fight.
Price talk on Amgen’s shortest two-year class of bonds was in the area of 90 basis points above the risk-free Treasury rate, according to CreditSights, while talk was in the area of 230 basis points above the benchmark rate for its 40-year class on bonds.
Read: Amgen plans mega bond deal to help fund $28 billion Horizon