CSL Limited (ASX:CSL) last week priced US$1.25 billion corporate bonds in the United States 144A/Reg S market.
The notes will be issued by CSL Finance Plc and guaranteed by the parent company, CSL Limited, and certain of its subsidiaries. The principal amount, tenor and coupon for the notes are:
• US$500m 10-year at a fixed rate coupon of 5.106%
• US$750m 30-year at a fixed rate coupon of 5.417%.
CSL intends to use the cash proceeds from the offering to refinance existing bank debt and the remainder for general corporate purposes. Settlement of the notes is expected to occur today, subject to customary closing conditions.
The blood products group had Bank of America, Citi, JPMorgan and HSBC working on the deal according to the Australian Financial Review.
It’s the same group that helped CSL raise US$4billion in debt in 2022 as part of its debt funding for its acquisition of Vifor Pharma.
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Rule 144A modifies restrictions for the purchase and sale of privately placed securities among qualified institutional buyers without the need for SEC registrations.
CSL reported its half-year results on 13 February. It recorded a 11% year-on-year increase in revenue to US$8.05 billion and net profit after tax in constant currency was up 20% to US$1.94 billion. It had net assets of US$19.16 billion.
