AstraZeneca wants to issue a dollar bond in three tranches

  •   06/08/2020 - 08h15
  •   DEHOUI Lionel

Like many companies last week, the pharmaceutical company AstraZeneca also lifted the veil on its second quarter results. These are well above investors' expectations according to figures released by the group last Thursday. This economic situation was explained by the dynamism of sales coming from a diversified range of products during the confinement.

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AstraZeneca wants to issue a dollar bond in three tranches
Image copyright: Gwan Kho - Flickr

A bond issue in view

It is following these half-yearly results that the pharmaceutical company announced on Tuesday that it was thinking of doing a particular operation. It is indeed the refinancing of its debt through a bond issue in dollars which includes three tranches. In detail, it should be understood that the biopharmaceutical group will carry out a $3 billion issue of new bonds. This amount is earmarked for a specific role.

By the way, this amount is to be used to finance the general needs of the pharmaceutical company. But it will be mainly used to refinance existing debt. However, the group did not fail to address the part concerning the maturities of the tranches. Indeed, AstraZeneca states that the maturities of the three tranches are spread at regular intervals ranging from six to 25 years. This shows maturities ranging from 2026 to 2050.

Information: AstraZeneca also reported that this corresponds to coupons between 0.7% and 2.125%. This announcement sounds like good news after the results announced by the laboratory last week. But especially in a context where AstraZeneca was going to enter in collaboration with the company Eko.


Collaboration between the American company Eko and AstraZeneca

First of all, you should know that the Eko Group is a leading company in the manufacture of new generation stethoscopes. This company announced on Tuesday its intention to collaborate with the AstraZeneca laboratory. This collaboration will make it possible to manufacture new digital tools for the screening of cardiovascular diseases. This particularly concerns the screening of heart failure. The American group Eko continued in its explanations.

The California state company has stressed that this famous partnership with the biopharmaceutical group will be of great use. In particular, it will allow the company to extend the capabilities of its technology by providing real data. The American company Eko has reported that heart failure is very often misdiagnosed. This is due to the limited availability of echocardiography systems and diagnostic tests. But what about the results of AstraZeneca ?


AstraZeneca's Quarterly Results Highlights

At this level, the pharmaceutical group is posting results well above investors' expectations, as it stated last Thursday. It is important to underline that the British laboratory was able to draw from the changes made by its CEO Pascal Soriot. The latter has placed more emphasis on the most recent drugs. As a result, AstraZeneca achieved a 9% increase in product sales in Q2 to $6.05 billion.

It thus exceeds the analyst consensus of $6.01 billion. EPS (earnings per share) in Q2 was $0.96 compared to the consensus of $0.93.