Pfizer Inc. (PFE.US) plans to issue $5 billion in bonds to raise funds for the acquisition of the weight-loss drug company Metsera.

According to informed sources, Pfizer Inc. (PFE.US) is planning to raise at least $5 billion through the issuance of dollar-denominated corporate bonds, with some of the funds being used to finance the recent acquisition of the obesity drug development company Metsera. The New York-based pharmaceutical giant plans to issue the bonds in up to seven tranches. Informed sources revealed that the longest-dated 40-year bonds are preliminarily priced with a spread of approximately 1.25 percentage points above U.S. Treasury yields. It is understood that on Tuesday, Pfizer Inc. launched a financing round for investment-grade bond issuance along with eight other institutions. The market completed $26.3 billion in financing transactions the day before, driven by Amazon.com, Inc.'s $15 billion investment-grade bond issuance. After a fierce bidding war, the COVID-19 vaccine development company completed the acquisition of Metsera for a maximum price of $10 billion, including a cash payment of $20.65 per share linked to certain contingent value rights. Sources stated that the funds raised through the bond issuance will also be used for general corporate operations and to refinance Pfizer Inc.'s existing debt.