Novartis raises $11 billion in bond sale to fund Avidity acquisition. The Swiss pharmaceutical giant issued investment-grade US dollar bonds across seven tranches with maturities ranging from three to 30 years. The longest tenor bond maturing in 2056 yields 0.9 percentage point over Treasuries, coming in 0.3 percentage point tighter than initial pricing. Proceeds will repay a bridge loan for the $12 billion Avidity Biosciences purchase, which closed last month. The deal strengthens Novartis's focus on innovative drugs in heart, kidney, metabolic, immunology, neuroscience, and oncology sectors. This offering reflects continued strength in acquisition-related bond financing despite wider spreads amid economic concerns. JPMorgan, Citigroup, BNP Paribas, Deutsche Bank, and Mizuho managed the sale, making it the largest of eight investment-grade offerings totaling $26 billion on the day.
