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The market is reassured as Shire refinances debt

Shire raises new debt through which hints at approval of its recent major acquisition
September 21, 2016

Shire (SHP) has taken advantage of current low borrowing costs to refinance the debt raised to fund its recent takeover of Baxalta. The UK's third-largest pharma company has raised $12bn (£9.23bn) through the issuance of bonds, which it plans to use to repay the bridge loans it opened to finance its $32bn takeover of the rare disease specialist.

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The deal represents the first bond offering from Shire and is the eighth-largest corporate bond issuance of 2016 - a year that has seen such financing methods accelerate as companies attempt to take advantage of low borrowing costs.