Roche Is Selling Euro Bonds in Further Funding for Telavant Deal

Roche Holding AG is offering new euro-denominated bonds as it seeks to raise more funds for its $7.1 billion acquisition of Telavant Holdings Inc.

The European financing arm of the Swiss pharmaceuticals giant is selling at least €1 billion ($1.1 billion) in two bonds, maturing in four and 13 years, according to a person familiar with the matter, who asked not to be identified because they’re not authorized to speak about it. Initial pricing discussions are at around 45 basis points and 80 basis points over mid-swaps, respectively.

The bonds are set to be used for mergers and acquisitions, as well as general corporate purposes like refinancing of regular debt maturities, payment of dividends and potential early redemptions.

Roche agreed to buy Telavant, a developer of a promising therapy for treating inflammatory bowel disease, in October. The Swiss firm, which is seeking to shore up its pipeline of experimental medicines, has said the buyout would be funded with debt.

The drugmaker raised $5.5 billion in a five-part dollar deal earlier this month. It sold bonds with maturities ranging from three to 10 years, and pulled in $12 billion of investor orders for the deal.

A spokesperson for Roche didn’t immediately respond to a request for comment.

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