Genmab said Monday it is raising $6 billion in debt through a combination of notes and loans to help fund its pending acquisition of biotechnology company Merus.
The financing package includes a private offering of $2.5 billion in senior notes and the syndication of new and existing credit facilities totaling $3.5 billion, according to the company.
Genmab intends to use the net proceeds, along with cash on hand, to fund the approximately $8 billion all-cash purchase of Merus and related expenses.
The Danish drugmaker announced in September its agreement to acquire Merus, its largest deal to date, to gain control of the company's promising late-stage cancer therapy, petosemtamab.
The deal is a key part of Genmab's strategy to build a pipeline of wholly-owned drugs and reduce its reliance on royalty revenue.
Genmab commenced a tender offer for all of Merus's shares in October, which is scheduled to expire in December.
The company said the notes will be offered to qualified institutional buyers and non-U.S. persons and will not be registered under the U.S. Securities Act.
More from this issuer
Related coverage
Genmab said Monday it is raising $6 billion in debt through a combination of notes and loans to help fund its pending acquisition of biotechnology company Merus.
Genmab A/S on Tuesday said it has commenced a cash tender offer to acquire all outstanding shares of Merus N.V. for $97.00 per share, formally launching its approximately $8 billion acquisition of the biotechnology company.
Genmab A/S said Saturday that updated data from a mid-stage trial showed its experimental drug, rinatabart sesutecan, demonstrated sustained anti-tumor activity in patients with advanced endometrial cancer.
Global sales of Genmab's cancer drug Darzalex rose to $3.67 billion in the third quarter, a 22% increase from the same period a year earlier, according to a company announcement on Tuesday.