Novartis AG raised $11 billion to help fund its purchase of Avidity Biosciences Inc., adding to a flurry of buyout-related bond sales.
A unit of the Swiss drugmaker sold investment-grade US dollar bonds in seven tranches, with maturities ranging from three to 30 years, according to a person familiar with the matter. A five-year floating-rate note was dropped during syndication, added the person, who asked not to be identified as they’re not authorized to speak publicly.
The longest tenor — a bond maturing in 2056 — will yield 0.9 percentage point over Treasuries, about 0.3 percentage point tighter than initial price talk, the person said.
Proceeds from the sale will be used to repay a Feb. 26 bridge loan for the $12 billion purchase of Avidity, Novartis said in a filing on Monday.
The offering is the latest major M&A financing to reach the investment-grade bond market, adding to a surge in corporate borrowing even as spreads widen over concerns about the economic impact of the Middle East conflict. Recent acquisition-related offerings include those from Keurig Dr Pepper Inc., Baker Hughes Co., Eaton Corp Plc and Abbott Laboratories.
Novartis agreed to acquire Avidity in October as part of a push to focus on innovative drugs in core areas including heart, kidney and metabolic drugs, immunology, neuroscience and oncology. The transaction closed last month.
BNP Paribas SA, Citigroup Inc., Deutsche Bank AG, JPMorgan Chase & Co. and Mizuho Financial Group Inc. managed the bond sale. The Novartis deal was the largest of eight investment-grade bond offerings totaling about $26 billion on Monday.
Novartis Capital Corp. last tapped the dollar market in November, when it sold $6 billion of notes across seven tranches.
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Published on March 17, 2026