CELG Celgene Corporation

   By Colin Kellaher 
 

Bristol-Myers Squibb Co. (BMY) is taking on more than $50 billion in debt as part of its takeover of Celgene Corp. (CELG).

In an investor presentation, the New York drug maker said it plans to issue $32 billion in new debt and to assume $20 billion in existing Celgene debt.

Bristol-Myers earlier Thursday said it agreed to buy biopharmaceutical company Celgene in a cash and stock deal valued at about $74 billion, or $102.43 a share, based on Wednesday's closing stock prices.

Bristol-Myers said it plans to fund the roughly $35 billion cash portion of the deal with the $10 billion in combined cash on the companies' balance sheets, along with new debt. The company said it has obtained a $33.5 billion fully underwritten bridge facility from Morgan Stanley and MUFG Bank Ltd.

The drug maker said it also plans an accelerated repurchase of about $5 billion of the stock it issues in the deal after it closes. Factoring in Celgene's debt and assuming completion of the buyback, Bristol-Myers said the deal carries a total price tag of about $90 billion.

Despite the additional debt, Bristol-Myers said it is committed to maintaining strong investment-grade credit ratings, helped by the more than $45 billion of free cash flow the company expects to generate over the first three full years.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

January 03, 2019 10:25 ET (15:25 GMT)

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