Bayer investors shrug off major settlement with €17.5bn of demand for new bonds

By Mike Turner
01 Jul 2020

Bayer, the German life sciences company, enjoyed blow-out demand for its €6bn multi-tranche bond issue on Wednesday, days after agreeing to pay up to $10.9bn to settle a lawsuit over claims its weedkiller, Roundup, causes cancer.

Bayer, rated Baa1/BBB/BBB, opened books on a four-tranche deal at initial price thoughts that one London syndicate banker called “a little bit cheap” and “priced to raise a decent amount”.

The four year bond started at 120bp over mid-swaps, the 6.5 year at 140bp, the 9.5 year at 160bp ...

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